Palo Alto Networks Falls After Q1 Results
Tech company Palo Alto Networks (NYSE: PANW) released its fiscal first-quarter earnings results after the closing bell on Thursday. In the after hours trading session, the stock fell around four percent to $49.15.
Although the company's adjusted earnings and revenue were slightly ahead of Wall Street estimates, rising expenses may have accounted for the caution in late trading.
The company posted a net loss in the period of $3.5 million or $0.05 per share, compared to net income of $4.1 million or breakeven per share in the year ago period.
On an adjusted basis, which is comparable to analysts' consensus, net income was $2.9 million or $0.04 per share, versus $5.6 million or $0.01 per share in the year ago period. The discrepancy in earnings per share is due to a lower share count. The results topped analysts' consensus EPS estimates of $0.03.
Total revenue in the period was up 50 percent to $85.9 million from $57.1 million last year. This also exceeded Wall Street analysts' estimates of $83.68 million.
Total operating costs in the first-quarter rose to $64.9 million from $42.3 million in last year's corresponding quarter
Mark McLaughlin, president and chief executive officer, Palo Alto Networks said, "We delivered a strong first quarter, achieving 14% sequential revenue growth and expanding our customer base to over 10,000 customers. Our performance demonstrates that our unique technology differentiation is resonating with customers, and as a result, our growth continues to significantly outpace the market."
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