Palo Alto Networks (PANW) Reports Earnings Tomorrow. What To Expect

Cybersecurity provider Palo Alto Networks (NASDAQ:PANW) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter Palo Alto Networks reported revenues of $1.88 billion, up 20.1% year on year, beating analyst revenue expectations by 1.9%. It was a mixed quarter for the company, with full-year revenue guidance missing analysts' estimates. On the other hand, revenue and EPS beat expectations this quarter, driven by better-than-expected ARR (annual recurring revenue) and cRPO (calculated remaining performance obligations).

Is Palo Alto Networks buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Palo Alto Networks's revenue to grow 19.1% year on year to $1.97 billion, slowing down from the 25.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.30 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1%.

Looking at Palo Alto Networks's peers in the cybersecurity segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Varonis delivered top-line growth of 8.1% year on year, beating analyst estimates by 1.6% and Qualys reported revenues up 10.5% year on year, missing analyst estimates by 0%. Varonis traded up 2.7% on the results, and Qualys was down 4.3%.

Read our full analysis of Varonis's results here and Qualys's results here.

There has been positive sentiment among investors in the cybersecurity segment, with the stocks up on average 2.9% over the last month. Palo Alto Networks is up 6.3% during the same time, and is heading into the earnings with analyst price target of $357, compared to share price of $367.5.

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