Palo Alto Networks (PANW) Stock Decline 24% Today

Palo Alto Networks stock drops as latest earnings report outlook disappoints investors, with Q3 and 2024 estimates falling short.

Today, the stock of Palo Alto Networks is taking a hit due to the disappointing outlook in its latest earnings report. Investors are not thrilled with the company's estimates for fiscal Q3 and the full year of 2024.

In terms of fiscal Q3 guidance, Palo Alto Networks is expecting adjusted earnings per share to be in the range of $1.24 to $1.26, falling below Wall Street's estimate of $1.29 per share. Additionally, the revenue guidance of $1.95 billion to $1.98 billion is also below analysts' estimate of $2.04 billion.

Looking ahead to fiscal 2024, the company's adjusted EPS of $5.45 to $5.55 is below Wall Street's estimate of $5.51 per share. Similarly, the revenue guidance of $7.95 billion to $8 billion falls short of analysts' estimate of $8.19 billion.

This disappointing outlook comes after Palo Alto Networks exceeded estimates for fiscal Q2, with adjusted EPS and revenue coming in at $1.46 and $1.98 billion, respectively. Both of these figures beat Wall Street's estimates of $1.30 per share and revenue of $1.97 billion.

As a result of this news, PANW stock is down 23.9% as of Wednesday morning, with more than 700,000 shares traded. This is below its daily average trading volume of about 3.7 million shares.

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