Palo Alto Networks Inc. (NASDAQ: PANW) has confirmed that it will release its quarterly earnings on Monday, November 18, 2021.
What to look for
Palo Alto Networks' business strength means that the company will continue benefiting from recent cyberattacks, continuing next-generation security success, and a strong product refresh cycle. In addition, the company is better positioned to continue enjoying from the vendor consolidation based on the product range. When the company released Q4 results, it gave upbeat guidance for fiscal 2022 adjusted free cash flow and better than anticipated medium-term targets. When the company releases fiscal Q1 2022 results, the company's strength in business will be reflected.
Earnings: Stockearning’s Estimated EPS for Q1 2022 will range from $1.55 to $1.58. Historical EPS Performance for the past 12 quarters shows that the company has missed estimates eight times (66%) and topped four times (33%). The company reported EPS of $1.6 per share in the last quarter, relative to consensus estimates of $1.44 per share. For fiscal 2022 the company expects adjusted earnings per share of around $7.20.
Revenue: The company expects revenue of between $1.19 billion to $1.21 billion in fiscal Q1 2022 relative to Refinitiv polled analysts' estimate of $1.15 billion. For the full fiscal 2022, the company anticipates revenue of between $5.28 and $5.33 billion. In fiscal fourth quarter 2021, the company reported revenue of $1.2 billion, representing 28% YoY growth. In addition, total billings during the quarter were up 34% YoY to $1.9 billion.
Stock movement: Since the last earnings release, Palo Alto Networks shares have gained 38.3%. Following the earnings release, the stock has been UP 23 times out of the last 37 quarters after the earnings release. So, the historical price reaction suggests a 62% probability of the share price going UP once Palo Alto Networks releases Q1 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 7%, while the expected move on the seventh day is 8%.
What analysts are saying
Wedbush analyst Daniel Ives has increased his price target on the stock from $470 to $600 but maintained a “Buy” rating on the stock. The upgrade reflects the analyst’s incremental positive checks on Palo Alto Networks cloud momentum in the sector. Also, Deutsche Bank analyst Patrick Colville raised Palo Alto Networks’ price target from $515 to $560 and maintained a “Buy” rating on the shares. In a research note, Colville noted that the company’s business momentum is a sign of a clear product fit in the burgeoning cybersecurity end sector.
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