Reported a solid quarter, and the guidance was ahead. Shares are taking a break following management comments about the challenging spending environment and outlook for hardware sales.Near-term challenges with hardware sales understandable as many datacenters remain closed. Pent up demand will drive growth post COVID.
Company's expanded product portfolio to drive revenue and billings growth. The company will become one of the dominant players in Cloud security.Valuation remains compelling, and the multiple is likely to expand as the subscriptions become a more significant portion of its business. We would be buying shares on dips.
Palo Alto Networks (PANW) reported computer engineer vs computer science results that were ahead of estimates and provided guidance that beat consensus estimates. PANW reported revenue of $950.4 million versus the consensus estimate of $923.8 million. EPS was $1.48 versus the consensus estimate of $1.39. The company provided F1Q21 revenue guidance in the range of $915-920 million, which was above prior consensus of $901 million. PANW guided EPS in the range of $1.32-1.35, which is again above the previous consensus estimate of $1.19. The company beat estimates on every metric it guided. Given the improving outlook, the transition from a single product to a multiproduct platform company, compelling valuation, and improving execution, we would be buying shares opportunistically. The following chart illustrates highlights of F4Q20 and FY20 results.
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