Palo Alto Networks Inc (NYSE:PANW), a global company that provides enterprise security platform to enterprises yesterday reported their fiscal third quarter 2016 financial results. Palo Alto Networks reported third quarter earnings of $0.42 per share which is exactly what analyst were expecting. Palo Alto Networks reported third quarter revenues increased 47.7% year over year to $345.8 million which beat analyst expectations of $339.86 million.
Palo Alto Networks CEO and CFO Comments
Our record fiscal third quarter 2016 results continue to underscore the market demand for our unique Next-Generation Security Platform as more than 31,000 new and existing customers are working with Palo Alto Networks to solve their most difficult security needs,” said Mark McLaughlin, president and chief executive officer of Palo Alto Networks. “Security has never been more critical than it is today, and our platform delivers natively integrated and highly automated prevention outcomes, allowing us to continue to significantly outpace the competition as we further establish ourselves as the leader in cybersecurity.
Robust new customer additions and expansion in existing accounts resulted in market-leading, year over year growth as customers increased their investments in our Next-Generation Security Platform, with particular strength in our subscription services,” said Steffan Tomlinson, chief financial officer of Palo Alto Networks. “We continue to balance growth and profitability and once again delivered record revenue, billings and cash flow, with cash flow from operations margin of 49 percent and free cash flow margin of 44 percent. PR Newswire
PANW Technical Analysis
PANW opened trading yesterday at $144.71, which was down from the previous days trading of $145.69. PANW closed trading yesterday at $148.18 and crashed down after market to $133.90, equivalent to a 10% decrease from the closing price. Taking a look at the daily chart we can see that the last time PANW traded below this price level was on May 13th when it traded at $130.97. Taking a closer look at the daily chart we can see that PANW has been on an overall downward trend dating back to March 31st when it traded at $163.14. PANW has a float of 84.70 million shares and traded 1.6 times the normal daily trading volume on Thursday. For trading purposes, I would like to see PANW open trading on Friday below $138.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $1.00 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Palo Alto Networks, Inc. provides enterprise security platform to enterprises, service providers, and government entities worldwide. Its platform includes Next-Generation Firewall that delivers application, user, and content visibility and control, as well as protection against network-based cyber threats; Advanced Endpoint Protection that prevents cyber attacks that exploit software vulnerabilities on various fixed and virtual endpoints and servers; and Threat Intelligence Cloud that offers central intelligence capabilities, security for software as a service applications, and automated delivery of preventative measures against cyber attacks. The company provides firewall appliances; Panorama, a centralized security management solution for the control of appliances deployed on an end-customer’s network as a virtual or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system capacity that ships with the appliance.
It also offers subscription services, such as threat detection and prevention, URL filtering, laptop and mobile devices protection, malware and threats protection, and windows-based fixed and virtual endpoints protection services; support and maintenance services; and professional services, including application traffic management, solution design and planning, configuration, and firewall migration services, as well as provides education services. Palo Alto Networks, Inc. primarily sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries comprising education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was founded in 2005 and is headquartered in Santa Clara, California.