Palo Alto Networks beats on profits and earnings, misses on gross margin

Palo Alto Networks reported better-than-expected profits and earnings for the most recent quarter however its gross margin used to be beneath estimates. The inventory dropped 4% in prolonged buying and selling on Tuesday.

Here’s how the corporate did, in comparison to analysts’ consensus estimates from LSEG:

• Earnings according to proportion: 80 cents, adjusted vs. 77 cents anticipated
• Revenue: $2.29 billion vs. $2.28 billion anticipated

Sales within the corporate’s fiscal third-quarter grew 15% from $1.98 billion a yr previous. Net source of revenue fell to $262.1 million, or 37 cents according to proportion, from $278.8 million, or 39 cents according to proportion, a yr in the past.

The corporate mentioned its fourth-quarter adjusted profits will come be between 87 cents and 89 according to proportion, forward of analysts estimates of 86 cents.

Palo Alto Networks mentioned that its non-GAAP gross margin used to be 76%, which trailed analysts’ estimates of 77.2%.

The corporate mentioned capital expenditures for its newest quarter had been $68.3 million, beneath Wall Street estimates of $70.8 million.

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