Stock Stock Palo Alto Networks fell on Thursday evening in a strong quarter and a strong full year’s view that were not good enough to satisfy the high expectations of investors. The revenues for the second quarter of the Cyber Security Company increased 14% from year to year to $ 2.26 billion, exceeding the Wall Street Consensus estimate of LSEG of $ 2.24 billion. The regulated profits per share (EPS) increased 11% to 81 cents in the three months that ended on January 31, before the LSEG consensus estimate of 78 cents. Palo Alto Networks why we own it: we believe that online security is a secular growth market as bad actors are relentless and companies simply cannot allow them not to invest in defense. Is an endless gun race. We believe that Palo Alto networks, in particular, are uniquely positioned to win because of its best tools in the classroom and a wide portfolio of products that allow it to provide a comprehensive “platform” solution for safety in Internet. Competitors: Crowdstrike (also a club action), Fortinet, Cisco Systems Buy Last: August 2, 2024 Initiation: 15 February 2023 has recently passed a year after Palo Alto Networks announced its plan to accelerate the concept of the platform, which is essentially the consolidation of different products and services on a single platform, and the results show that it has gained some steam and has begun to scaling, creating efficiency from a sales perspective. The company had 75 new customers of the net platform in the second quarter of this year, from 45 to Q2 in fiscal 2024. Palo Alto now has 1,150 platformation, from about 1,150 in the first quarter. Management continues to believe that they are on the right track to hit their 2,500 to 3,500 to Fiscal Year 2030. Palo Alto is postponing the platform because it means that customers are using more its products and services by led to larger agreements and the highest annual revenue repeated to the client, one of the big quarter victories was a $ 68 million agreement with a bank in Asia consolidating with Palo Alto for the first time. Another view was a $ 61 million transaction with an American municipality. The agreement included renewing its network security assets and expanding throughout Palo Alto’s portfolio. A third big win was a $ 25 million deal with a vehicle manufacturer. This client had already returned to the platform in the Cloud network and security and had made additional purchases on all the company offers. In total, Palo Alto Networks had 74 increased accounts of transactions of over $ 5 million each. This has increased 25% more than year. Moreover, 32 accounts had transactions over $ 10 million each, which increased by 52% year by year. Another case for this umbrella strategy is the best security results. While calling at the conference, Ceo Nikesh Arara shared the findings of a recent study by the company with IBM. She indicated that platform organizations take 72 fewer days to detect an incident and four fewer days to contain a security incident. ARORA was also optimistic about the prospect of online security expenses for the rest of the year, anticipating “reasonable growth”. He also sees advances in the creation of the tail. “While the conversation about he continues to get comprehensive and the companies compete to evaluate, experiment and determine, they are discovering that some of the inheritance architects come in the way of their aspirations,” he explained. “Interestingly, this is resulting in a revival of cloud transformation projects and consequently, network security requirements and network transformation.” “While online security is a derivative effect,” He continued, “it is clear that the long -term tendency towards it will continue to support technology transformations that continue to promote security demand.” So why the shares are falling more than 5.5% in the post -time trade? Consensus estimates for Palo Alto and EPS quarterly income in several other data providers, including bloomberg, were higher, which could add instability. However, for our comparisons, we are standing with LSEG and factset as they are what we use for each profit report. You can also make the company for a fiscal guide in line 2025 of the third trimester and no material growth in the full perspective of the year. Panw 1y Mountain Palo Alto Networks 1 year still, this was a very good quarter. Stock Palo Alto took place over the last two weeks, along with other internet security actions pending strong profits, and this lower action represents a repeal of this week’s profits. It is a little frustrating to see the stock trade in the lower years of the 190s, essentially the same level that was raised around the last quarter. But even with this decline, the shares were even more than 5% for the year, exceeding S&P 500 wider. Progress has made real progress, but the market may need to see some more evidence that the platform is leading to faster growth in getting the shares trend towards our $ 225 price target. We still think it can get there. We are repeating our assessment 2. We strongly believe that hackers will continue to become more capable of the spread of artificial intelligence. For this reason, we have a second internet security action, Crowdstrike, which is expected to report revenues next month. Comment Palo Alto Networks has stopped providing billing guidelines because management believes it is no longer so important in the current environment of high interest, with customers seeking more and more financing options. Rather, their focus is on increasing its remaining performance obligation (RPO) because it represents the total value of contracted income that will not yet be delivered. The company RPO in its second fiscal quarter was at the high end of preliminary guidelines, increasing about 21% from year to year to $ 13 billion and beating little estimates of $ 12.96 billion. A second metric Palo Alto wants investors to focus on its average security income of the next generation (NGS), or ARR for February. This is another term of the reconciliation business that represents the annual income of all active contracts on the last day of the reporting period. The RTA includes income for Palo’s Alto Prism, Cortex, Qradar and certain security services submitted to the Cloud. This metric increased 37% year by year to $ 4.78 billion, overcoming $ 4.73 billion consensus rating and the high completion of preliminary instructions. The company also pushed again some of the Bearish anti -stock points. For example, Arora said in the call that there is a refreshing cycle that comes to many online security companies, and he expects to benefit from it. Another investor’s reluctance is about the rate of US federal spending while President Donald Trump looks at agency budget cuts. CFO DIPAK Golechha facilitated some of these concerns by explaining that the company has “careful expectations” for the federal market this year, and most of the business is linked to existing long funding renovations and programs. Instructions for the third fiscal trimester 2025, here’s what Palo Alto expects. All estimates are sourced from factset. Total revenue of $ 2.26 billion to $ 2.29 billion, which is in accordance with the $ 2.27 billion consensus estimate. Non-Gap profits per share (EPS) in the range of 0.76 to $ 0.77, which is in accordance with the consensus estimate of $ 0.76. Remaining a performance of $ 13.5 billion to $ 13.6 billion, which is also highly consistent with a consensus estimate of $ 13.55 billion. The next generation security amounts from $ 5.03 billion to $ 5.08 billion, in accordance with the assessment of $ 5.05 billion. For the full fiscal year 2025, management expects the following. Total revenue of $ 9.14 billion to $ 9.19 billion, reflecting a slight increase from the previous $ 9.12 billion guide to $ 9.17 billion and slightly more than $ 9.15 billion consensus. EPS non-gaap in the range of $ 3.18 to $ 3.24, reflecting a strong rise from the prior guide of $ 3.13 to $ 3.20 and on the estimate of $ 3.17 billion. RPO in the range of $ 15.2 billion to $ 15.3 billion, unchanged from its previous perspective and in accordance with the assessment of the 15.24 billion consensus. Repetitive income of RF from $ 5.52 billion to $ 5.57 billion, unchanged from its previous perspective. The adjusted cash flow margin of 37% to 38%, unchanged. (Jim Cramer’s charity is long, CRWD. See here for a full stock list.) As a subscriber of the CNBC investment club with Jim Cramer, you will receive a trade alarm before making a trade. Jim waits 45 minutes after sending a commercial alarm before buying or selling an action on his charity portfolio. 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Palo Alto Networks Selia in Santa Clara, California, SH.BA, Monday, August 14, 2023.
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Club Palo Alto Networks It fell on Thursday evening in a strong quarter and a strong full -year view that were not good enough to satisfy the high expectations of investors.