Palo Alto Networks, Inc. (NYSE:PANW) falls below IPO price after First Quarter Earnings Results

The financial result of the first quarter earnings of Palo Alto Networks, Inc. (NYSE:PANW) was released on Thursday after the closing bell. A fall of 4 percent was recorded in the afterhours trading session and it closed at $49.15.

The adjusted earnings and profits of the company were slightly higher than the estimation of Wall Street. So, the caution that was taken in the late trading might be because of the rise in expenses.

The net income of the company was $4.1 million or manageable per share and net loss of $3.5 million or $0.05 for each share in the period of year ago.

The net income was $2.9 million in opposition to $5.6 million in the year ago period, on an adjusted basis which can be compared to the consensus of the analysts. The inconsistency that is seen in earnings per share is because of a poorer share count. The outcome crowned the estimated consensus of analysts EPS of $0.03.

Total revenue from $57.1 million of last year to $85.9 million was recorded up by almost 50 percent. This figure also exceeded the estimate of analysts of Wall Street which was $83.68 million.

When compared with last year, the operating costs in first quarter went up from $42.3 million to $64.9 million.

Mark McLaughlin, president and chief executive officer, Palo Alto Networks, Inc. (NYSE:PANW) said that they had delivered a well-built first quarter and had achieved14% chronological revenue growth and had expanded their customer potential to more than 10,000 customers. According to him, their performance demonstrated that their unique technology demarcation was booming with customers, and as a result, their growth carries on to appreciably outpacing the market.

Share price of Palo Alto Networks, Inc. (NYSE:PANW) were up by 0.02% to close at $51.31.

About the Author

Alison Simpson is an Business and general assignment reporter. Alison Simpson covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Alison graduated from Trinity College in Hartford, Conn., and later earned a master’s degree from Northwestern's Medill School of Journalism. Alison also covered congress for Defense News and providing regular coverage of the budget debate on Capitol Hill and its implications for national security.

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