Palo Alto Price Correction after Earnings Bump
US cybersecurity company Palo Alto Networks released its quarterly earnings and enjoyed a stock price jump.
Cybersecurity network firm Palo Alto Networks (PANW) beat the earnings estimates during its quarterly report. Even though the share price spiked then, it is falling now.
On Tuesday, Palo Alto, one of the biggest cybersecurity firms in the world, posted its earnings for the fourth fiscal quarter. The analyst productions came in slightly lower than the actual numbers, with Palo Alto earning 12.5% more this quarter than it did in the same quarter last year.
The company brought in $2.18 billion in revenue for the quarter and $8.03 for the entire year. This report covered the full fiscal year, and the company is looking good moving forward.
On Tuesday, the PANW stock price jumped from $341 to $373. That gain was helped along by a very healthy stock market that was seeing weeks of almost straight gains. But as soon as the stock price peaked, it started a slow and steady decline. For Thursday, the price is down to $353.
What Happened to Palo Alto’s Stock?
Investors who thought that the stock would just keep climbing were in for a big surprise on Wednesday. The stock started falling and continued to fall, and it has not stopped so far. Over the last 24 hours, Palo Alto stock has dropped by 1.70%.
This drop can be partially blamed on a price correction, which is only natural for a company that has a significant increase in a short period of time, but it did not beat industry estimates by very much. Investors also need to remain aware that inflation is high, and even though it is dropping and some economic factors are looking better than they did a few months ago, the US economy is still in a struggling state.
Palo Alto expects to bring in anywhere from $2.1 to $2.13 for the current fiscal quarter. If they stay on track to meet those expectations, they should be able to keep the stock price elevated but not back up to its most recent high.
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