Feb 28 Cybersecurity company Palo Alto Networks
Inc forecast third-quarter revenue and profit well
below analysts' estimates, sending its shares down 18 percent
after the bell on Tuesday.
The company said it expected revenue of $406 million to $416
million and adjusted profit of 54 cents to 56 cents per share
for the quarter.
Analysts on average were expecting revenue of $454.6 million
and adjusted profit of 70 cents per share, according to Thomson
Although the company's second-quarter revenue surged 26.3
percent to $422.6 million, driven by its subscription services
business, it still fell short of analysts' target of $429.7
Chief Executive Officer Mark McLaughlin attributed the miss
to "some execution challenges."
The company's net loss widened to $60.6 million, or 67 cents
per share, for the three months ended Jan. 31 from $57.3
million, or 66 cents per share, a year earlier.
Excluding items, the company earned 63 cents per share,
edging past the average analysts' estimate of 62 cents.
Palo Alto also increased its share buyback program to $500
million, bringing its total repurchase authorization to $1
The company's shares fell to $124.81 in after-hours trading
after closing at $151.90 on Tuesday on the New York Stock
(Reporting by Laharee Chatterjee and Pushkala A in Bengaluru;
Editing by Anil D'Silva)