Palo Alto Networks Inc (NYSE:PANW) perplexed analysts and pushed its share price lower Wednesday when it announced plans to report earnings after the bell on Friday, a highly untraditional move.
Shares of the cybersecurity company are down another 2.9% Thursday to $207.83, and analysts aren’t sure what to make of it.
“We have seen many strange things in our 23 years covering the tech sector on the Street and thought we have seen it all until Palo Alto decided to host a ‘head scratching’ after the close conference call this Friday to discuss its earnings and medium term guidance,” Wedbush analysts wrote.
“Very simply this is one of the biggest PR disasters and black eyes we have seen in decades of covering tech as the pure fear of an unprecedented Friday night special conference call in the summer timeframe has sent investors to the elevators ahead of this moment with the stock down materially since the news first hit the tape.”
What makes matters worse was soft guidance from Palo Alto rival Fortinet, the firm noted.
That “has resulted in the Street fearing the worst and hoping for the best into this Friday night Twilight Zone conference call that has destroyed shareholder value.”
Despite the highly unorthodox move, however, Wedbush reiterated its Outperform rating and price target of $290, seemingly endorsing the idea that the Friday night decision appears worse than it actually is.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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