Palo Alto Networks Inc (NYSE:PANW) has perplexed shareholders and analysts by opting to report earnings after the market closes on Friday afternoon.
Companies rarely ever report after the trading week ends. When Palo Alto announced on August 2 that it was doing exactly that, the cybersecurity company’s shares tumbled.
There is fear among investors that Palo Alto will deliver poor results and potentially soft fiscal 2024 guidance as well.
That concern was only compounded when Fortinet, a competitor, reported second-quarter results on August 3 that missed on revenue and billing.
The company attempted to assuage those concerns, writing in an email to analysts, "While not conventional timing, this is the optimal date given other important company events, including sales kickoff the following week."
Analysts expect Palo Alto to report revenue of $1.96 billion and earnings of $1.28 per share.
"We believe the focus of the upcoming Friday night earnings call is more so the fiscal 2024 guide and less so the quarter,” BMO Capital Markets (NYSE:BMO) analyst Keith Bachman wrote. “In our opinion, investor expectations for 2024 guidance metrics include midteens billings growth and mid-30% free cash flow margins."
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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