Palo Alto (PANW) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Palo Alto Networks (PANW) reported $1.98 billion in revenue for the quarter ended April 2024, representing a year-over-year increase of 15.3%. EPS of $1.32 for the same period compares to $1.10 a year ago.

The reported revenue represents a surprise of +0.91% over the Zacks Consensus Estimate of $1.97 billion. With the consensus EPS estimate being $1.25, the EPS surprise was +5.60%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Billings: $2.33 billion versus the nine-analyst average estimate of $2.33 billion.

• RPO (Remaining Performance Obligation): $11.3 billion versus $11.09 billion estimated by three analysts on average.

• Revenue- Product: $391 million versus $387.62 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.

• Revenue- Subscription and support: $1.59 billion compared to the $1.58 billion average estimate based on 12 analysts. The reported number represents a change of +19.6% year over year.

• Revenue- Subscription and support- Support: $548.20 million versus the two-analyst average estimate of $559.67 million. The reported number represents a year-over-year change of +10.8%.

• Revenue- Subscription and support- Subscription: $1.05 billion versus $1.03 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +24.8% change.

• Subscription and support gross profit Non-?GAAP: $1.22 billion versus the 10-analyst average estimate of $1.22 billion.

• Product gross profit Non-GAAP: $316.60 million compared to the $297.60 million average estimate based on 10 analysts.

View all Key Company Metrics for Palo Alto here>>>

Shares of Palo Alto have returned +14.5% over the past month versus the Zacks S&P 500 composite's +5.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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