Palo Alto Networks’ (NASDAQ:PANW) third-quarter fiscal year 2024 financial results bested market expectations, but stocks sunk during post-market trading on lowered billings’ guidance.
The Santa Clara, Calif.-based cybersecurity company tumbled 8% after its latest financial results and outlook was issued after the market closed on Monday.
For the quarter, Palo Alto reported non-GAAP earnings per share of $1.32 versus the consensus of $1.25 and total revenue of $2B versus the consensus of $1.97B.
Looking ahead, Palo Alto Networks expects fourth quarter earnings per share of $1.40 to $1.42, which is nearly in-line with the estimate of $1.42. Total revenue expectations for the quarter range from $2.15B to $2.17B, which is also close to the estimate of $2.17B.
Billings for fiscal year 2024 are now expected to range from $10.13B to $10.18B, which represents year-over-year growth of 10% to 11%. In February, the company lowered its full-year revenue and slashed its FY24E billings guide by $600M. The billings’ guidance issued at that time for the year ranged from $10.1B to $10.2B.
However, guidance for non-GAAP earnings per share for the year increased since February. Palo Alto now expects annual earnings per share to range from $5.56 to $5.58 versus its previous forecast of $5.45 to $5.55.
“We are pleased with the enthusiastic response to platformization from our customers in Q3,” said Palo Alto CEO Nikesh Arora. “Platformization is a long-term strategy that addresses the increasing sophistication and volume of threats, and the need for AI-infused security outcomes.”