Yahoo Finance Palo Alto (PANW) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures
The upcoming report from Palo Alto Networks (PANW) is expected to reveal quarterly earnings of $1.25 per share, indicating an increase of 13.6% compared to the year-ago period. Analysts forecast revenues of $1.97 billion, representing an increase of 14.3% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some Palo Alto metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Revenue- Product' to come in at $387.96 million. The estimate indicates a change of 0% from the prior-year quarter.
The consensus estimate for 'Revenue- Subscription and support' stands at $1.59 billion. The estimate indicates a year-over-year change of +18.9%.
The collective assessment of analysts points to an estimated 'Revenue- Subscription and support- Support' of $559.67 million. The estimate suggests a change of +13.1% year over year.
Analysts forecast 'Revenue- Subscription and support- Subscription' to reach $1.03 billion. The estimate indicates a change of +23% from the prior-year quarter.
The combined assessment of analysts suggests that 'Billings' will likely reach $2.33 billion. The estimate is in contrast to the year-ago figure of $2.26 billion.
According to the collective judgment of analysts, 'Subscription and support gross profit Non-?GAAP' should come in at $1.22 billion. Compared to the present estimate, the company reported $1.01 billion in the same quarter last year.
The average prediction of analysts places 'Product gross profit Non-GAAP' at $297.60 million. Compared to the current estimate, the company reported $298.40 million in the same quarter of the previous year.
View all Key Company Metrics for Palo Alto here>>>
Over the past month, shares of Palo Alto have returned +9.6% versus the Zacks S&P 500 composite's +2.5% change. Currently, PANW carries a Zacks Rank #2 (Buy), suggesting that it may outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
