Palo Alto Networks Inc (NYSE:PANW) shares were down 6% after a guidance downgrade weighed heavy, with growth expected to slow to 19% for the full year, versus 25% in the 2023 financial year.
The cybersecurity firm reported fiscal first quarter financial results Wednesday that beat analyst estimates.
First quarter revenue rose 20% year over year to $1.9 billion, edging past the analyst consensus forecast of $1.84 billion.
Palo Alto generated adjusted earnings per share (EPS) for period of $1.38, which also exceeded expectations of $1.16.
"We continue to execute on platformization as customers recognize the benefits we can provide in simplifying security architectures and driving better security outcomes," Palo Alto Networks CEO Nikesh Arora said in a statement.
The company cautioned, however, that its billings for the quarter “were impacted by the cost of money,” and forecast total billings for the year of between $10.7-$10.8 billion, less than its preview outlook of $10.9-$11 billion and the consensus estimate of $10.96 billion.
For the full year of fiscal 2024, Palo Alto said revenue growth is expected to slow to about 19% from 25% in fiscal 2023, noting that companies are taking longer to approve computer security purchases and that sales for firewall network appliances have slowed.
In New York, Palo Alto shares were down $15.40 or 6.01% in Thursday’s early deals changing hands at $240.78.