Compared to Estimates, Palo Alto (PANW) Q3 Earnings: A Look at Key Metrics

Palo Alto Networks (PANW) reported $1.72 billion in revenue for the quarter ended April 2023, representing a year-over-year increase of 24.1%. EPS of $1.10 for the same period compares to $0.60 a year ago.

The reported revenue represents a surprise of +0.38% over the Zacks Consensus Estimate of $1.71 billion. With the consensus EPS estimate being $0.92, the EPS surprise was +19.57%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Billings: $2.26 billion versus the 12-analyst average estimate of $2.23 billion.

• Revenue- Product: $388.10 million versus $377.30 million estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change.

• Revenue- Subscription and support: $1.33 billion compared to the $1.34 billion average estimate based on 13 analysts.

• Revenue- Subscription and support- Support: $494.70 million versus the five-analyst average estimate of $491.68 million.

• Revenue- Subscription and support- Subscription: $838.10 million versus the five-analyst average estimate of $844.63 million.

• Product gross profit Non-GAAP: $298.40 million versus the 12-analyst average estimate of $264.78 million.

• Subscription and support gross profit Non-?GAAP: $1.01 billion compared to the $1.01 billion average estimate based on 12 analysts.

• Subscription and support gross profit GAAP: $951.40 million versus the three-analyst average estimate of $960.56 million.

• Product gross profit GAAP: $294.70 million versus $259.28 million estimated by three analysts on average.

View all Key Company Metrics for Palo Alto here>>>

Shares of Palo Alto have returned +0.1% over the past month versus the Zacks S&P 500 composite's +1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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