$PANW Slips After Forecast Cut Despite Solid Revenue Growth
$PANW Slips After Forecast Cut Despite Solid Revenue Growth
Shares of slid after the cybersecurity giant cut its annual profit forecast, even though revenue and earnings beat the quarter. The pullback comes as deal costs from big acquisitions, like the recent CyberArk and Chronosphere buys plus a new Koi deal, pile up and eat into short-term margins. Revenue is still growing and guidance for the next quarter is above expectations, but profits are getting trimmed and that’s enough to spook traders when stock prices are rich and sentiment is fragile. So you’ve got top-line strength but near-term profit pressure, and the market doesn’t love mixed signals. That’s why is trading lower today.
It looks like the market is throwing a tantrum over the near-term costs of long-term growth. Even with a double beat on revenue and earnings, that guidance cut due to M&A integration clearly spooked the traders
thanks for the update on palo alto networks. it's interesting to see how much those deal costs are actually hitting the bottom line lately.
