Palo Alto Networks (PANW): Aggressive Pricing Limits Upside And Leads To Weaker Than Expected Guidance - Baird
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Baird analyst, Jayson Noland, reiterated his Outperform rating of Palo Alto Networks (NYSE: PANW) after the company beat revenue by ~2% and met EPS. The analyst stated "Palo Alto reported a solid FQ4. Management cited an improved macro-economic environment. The FQ1 guide and F17 guidance commentary were mixed relative to expectations. Specifically, F17 product revenue guidance will cause some confusion. We remain buyers of the stock and continue to expect Palo to take share with its platform-based approach and hybrid SaaS model."
Revenue/non-GAAP EPS of $401 million/$0.50 compared to consensus of $390 million/$0.50. Billings of $572 million exceeded consensus of $562 million, up 45% YoY. Management guided revenue/non-GAAP EPS to $396-$402 million/$0.51-$0.53 versus consensus of $402 million/$0.56. For F17, management guided non-GAAP EPS to $2.75-$2.80 versus consensus of $2.65.
The price target of $175 is cut from $180.
Shares of Palo Alto Networks closed at $143.45 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesRobert W Baird, Jayson Noland
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