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California-based Palo Alto Networks, Inc. (PANW) is a leading cybersecurity company that specializes in advanced network security solutions for enterprises, service providers, and government entities. With a market cap of $105.8 billion, the company is expected to announce its fiscal Q4 earnings results on Friday, Aug. 16.
Ahead of its upcoming earnings report, analysts project the cybersecurity giant to report a profit of $0.77 per share, down 3.8% from $0.80 per share in the year-ago quarter. Despite this, the company has consistently exceeded Wall Street's bottom-line expectations, surpassing estimates in each of the last four quarters, including a notable 56.1% beat in the most recent quarter with an EPS of $0.89.
For fiscal 2024, analysts expect PANW to report EPS of $2.94, a significant 63.3% increase from $1.80 recorded in fiscal 2023.
On a YTD basis, PANW increased 10.8%, trailing behind the S&P 500 Index's ($SPX) 14.5% rise and the S&P 500 Technology Sector SPDR's (XLK) 12.4% gain over the same period.
Despite better-than-expected Q3 earnings result on May 20, Palo Alto Networks' shares fell 3.7% the following day due to a disappointing Q4 billings forecast, highlighting concerns about a potential deceleration in cybersecurity spending. Additionally, the slight reduction in its full-year billings guidance and cautious spending by businesses amid high inflation and economic uncertainty contributed to the negative market sentiment.
However, analysts' consensus rating on Palo Alto Networks stock is still bullish, with a "Strong Buy'' rating overall. Out of 44 analysts covering the stock, opinions include 30 "Strong Buys," two "Moderate Buys," and 12 "Holds."
The above consensus is more bullish than three months ago, with 28 “Strong Buy” recommendations ratings on the stock. The average analyst price target for PANW is $342.39, suggesting a potential upside of just 4.8% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
