Feb 28 (Reuters) - 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 Reuters I/B/E/S.
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 million.
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 billion.
The company’s shares fell to $124.81 in after-hours trading after closing at $151.90 on Tuesday on the New York Stock Exchange. (Reporting by Laharee Chatterjee and Pushkala A in Bengaluru; Editing by Anil D‘Silva)