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Palo Alto Networks ( PANW ) is expected late Thursday to report fiscal Q3 sales and earnings that decelerated to mid-2014 trough levels, with further sales-growth slowing expected in fiscal Q4, according to the consensus of 43 analysts polled by Thomson Reuters. In early afternoon trading on the stock market today , Palo Alto Networks stock was up a fraction, near 145. The rise underperformed IBD’s 26-company Computer Software-Security industry group, which jumped 1.6%. A weak April-quarter earnings report by the company could stoke further questions of a broad cybersecurity slowdown . This month, investment bank Piper Jaffray noted slowing demand for Palo Alto Networks products, citing its own checks of the sales channel. Palo Alto’s results come after soft Q2 and fiscal 2016 guidance from security vendors Check Point Software Technology ( CHKP ) and FireEye ( FEYE ). Imperva ( IMPV ) and Proofpoint ( PFPT ) likewise missed with their Q2 guidance, and Barracuda Networks ‘ ( CUDA ) and Fortinet ‘s ( FTNT ) full-year views lagged. For fiscal Q3, Palo Alto Networks is expected to report $339.5 million in sales and 42 cents earnings per share minus items, up a respective 45% and 83% vs. the year-earlier quarter. A company faces the prospect of lower percentage growth when it gets bigger, but Q3 sales would decelerate for the fourth consecutive quarter and would dip below 50% growth for the first time since June 2014. For the current fiscal Q4, the analyst consensus calls for 37% year-over-year growth, lagging the 53% growth average Palo Alto has enjoyed the past three years. Q3 EPS, as modeled, would break a five-quarter streak of triple-digit growth and touch a seven-quarter low. But analysts model 79% EPS ex items growth in fiscal Q4, which would top the 55% growth average for Palo Alto’s past three July quarters. Scalper1 News
Scalper1 News