When Palo Alto Networks (PANW) releases its results for the quarter ending in July 2024, the market anticipates that the company will report lower earnings yearly despite increased revenues. This well-known consensus outlook is crucial for evaluating the company's revenue picture. Still, the way the actual results stack up against these estimates is a significant factor that could impact the stock price shortly.
Palo Alto stock could rise if these crucial figures exceed forecasts in the next earnings report. In contrast, if they miss, the stock might drop.
PANW Is Set To Release Q4 Earnings Report
After hitting its 40-week line, PANW stock is now rising. The foundation was created when the stock fell sharply after the cybersecurity leader's poor annual guidance during a February revenue sell-off. The company's primary business, selling firewall appliances, was facing pressure on sales while it began combining products to counter price wars.
Palo Alto Networks (PANW), a cybersecurity company, is scheduled to release its fiscal Q4 2024 outcomes on August 19. Wall Street analysts anticipate that the company will report Q4 revenue of $1.41 per share, which is 2% less than last year. Analysts predict earnings of $2.16 billion, an increase of $11% from the previous year.
Even though analysts predict lower Q4 earnings than they did in the same quarter the previous year, PANW has a solid history of outperforming earnings projections. The company has beaten earnings projections in the last nine periods.
Palo Alto Networks Stock Bullish & Bearish Case
Bulls point out the company's broadened cybersecurity services across Network Security, Cloud Security, and Security Operations, and they are motivated by its solid free revenue generation. They also highlight PANW's structure strategy, gaining traction with further agreement times and increased consumer acceptance of integrated solutions.
On the other hand, bears draw attention to PANW's billing pressure and predict a slowdown in revenue growth, primarily due to difficulties in the firewall marketplace and dwindling hardware sales. Additionally, they expect that estimated modifications and revenue variations will continue to cause stock volatility.
PANW Stock Forecast Technical Analysis
In the daily chart of PANW stock price, a prolonged buying pressure is visible. Moreover, the most recent price showed a bullish V-shape recovery, where the current Palo Alto stock price is facing a resistance from the 345.38 static level.
In the broader context, the dynamic 200-day Simple Moving Average is the major support from where a bullish recovery has come. Moreover, the 50 day EMA is also below the current Palo Alto Networks stock price, working as a bullish support.
Based on this outlook, a bullish continuation is highly possible, where the current resistance is at the 381.86 level, which is a Fibonacci Extension level from the current swing.
However, a downside correction is possible towards the 50 day EMA line from where an additional buying pressure could come. In both cases, a stable market above the 350.00 level could have potential to reach beyond the 400.00 psychological line.
