Palo Alto Networks Sinks On Subdued Fourth-quarter Outlook

Shares of Palo Alto Networks Inc. sank in Thursday's extended session after the advanced-firewall company issued a subdued outlook. Palo Alto Networks reported its fiscal third-quarter loss widened to $70.2 million, or 80 cents a share, from a loss of $45.9 million, or 56 cents a share, a year ago. On an adjusted basis, the company would have earned 42 cents a share. Revenue grew 48% to $345.8 million and billings jumped 61% to $486.2 million. Analysts surveyed by FactSet had forecast earnings of 42 cents a share on revenue of $340 million. The company also projected adjusted EPS of 48 cents to 50 cents and revenue in a range of $386 million to $390 million in the fourth quarter. Analysts are looking for fourth-quarter earnings of 50 cents and revenue of $389 million. Palo Alto shares tanked more than 8% in after hours.