Countdown to Palo Alto (PANW) Q2 Earnings: A Look at Estimates Beyond Revenue and EPS

Wall Street analysts forecast that Palo Alto Networks (PANW) will report quarterly earnings of $1.30 per share in its upcoming release, pointing to a year-over-year increase of 23.8%. It is anticipated that revenues will amount to $1.97 billion, exhibiting an increase of 19.1% compared to the year-ago quarter.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

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.

In light of this perspective, let's dive into the average estimates of certain Palo Alto metrics that are commonly tracked and forecasted by Wall Street analysts.

It is projected by analysts that the 'Revenue- Product' will reach $361.71 million. The estimate suggests a change of +2.5% year over year.

The collective assessment of analysts points to an estimated 'Revenue- Subscription and support' of $1.61 billion. The estimate points to a change of +23.5% from the year-ago quarter.

Analysts forecast 'Revenue- Subscription and support- Support' to reach $566.62 million. The estimate indicates a change of +16.4% from the prior-year quarter.

The consensus among analysts is that 'Revenue- Subscription and support- Subscription' will reach $1.04 billion. The estimate indicates a change of +27.9% from the prior-year quarter.

The combined assessment of analysts suggests that 'Billings' will likely reach $2.36 billion. Compared to the present estimate, the company reported $2.03 billion in the same quarter last year.

According to the collective judgment of analysts, 'Subscription and support gross profit Non-?GAAP' should come in at $1.23 billion. Compared to the current estimate, the company reported $993.10 million in the same quarter of the previous year.

Analysts' assessment points toward 'Product gross profit Non-GAAP' reaching $277.70 million. Compared to the current estimate, the company reported $256 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 +10.9% versus the Zacks S&P 500 composite's +3.7% change. Currently, PANW carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.