Cybersecurity platform provider Palo Alto Networks (NASDAQ:PANW) will be reporting earnings this Tuesday after market hours. Here's what investors should know.
Palo Alto Networks beat analysts' revenue expectations last quarter, reporting revenues of $3.00 billion, up 31.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' billings estimates and a solid beat of analysts' adjusted operating income estimates.
Is Palo Alto Networks a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members .
This quarter, the market is expecting Palo Alto Networks's revenue to grow 32.2% year on year, improving from the 15.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Palo Alto Networks has a history of exceeding Wall Street's expectations.
Looking at Palo Alto Networks's peers in the cybersecurity segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Qualys delivered year-on-year revenue growth of 11%, beating analysts' expectations by 2%, and Okta reported revenues up 10.6%, topping estimates by 1.5%. Qualys traded up 13.8% following the results while Okta was also up 26.5%.
Read our full analysis of Qualys's results here and Okta's results here .
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 14.2% on average over the last month. Palo Alto Networks is up 7.2% during the same time and is heading into earnings with an average analyst price target of $364.01 (compared to the current share price of $372.19).
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