Palo Alto Networks Inc (NYSE:PANW) reported better-than-expected results for its third quarter, but issued weak earnings guidance for the fourth quarter. The company also announced plans to purchase two companies, Twistlock and PureSec.
The company, based in Santa Clara, Calif., reported that total revenue for the fiscal third quarter 2019 grew 28% year over year to $726.6 million, compared with total revenue of $567.7 million for the fiscal third quarter 2018.
GAAP net loss for the fiscal third quarter 2019 was $20.2 million, or $0.21 per diluted share, compared with GAAP net loss of $40.4 million, or $0.44 per diluted share, for the fiscal third quarter 2018.
Said CEO Nikesh Arora, "Our team continues to execute on our plan and deliver robust results. The excitement around our new products is incredible and will only grow once customers have a chance to experience it for themselves.
"Both Twistlock and PureSec will be important additions to helping protect our customers' journey to the cloud. Combining their capabilities with Prisma, our leading cloud security suite, is a huge win for all of our customers."
For the fiscal fourth quarter 2019, PANW expects total revenue in the range of $795 to $805 million, representing year-over-year growth between 21% and 22% on an ASC 606 basis.
Diluted non-GAAP net income per share in the range of $1.41 to $1.42, using 100 to 102 million shares on an ASC 606 basis. This guidance includes the impact of approximately $15 million in net expense, or $0.12 per share, related to a full quarter of the Demisto acquisition as well as the proposed acquisitions of Twistlock and PureSec.
It also includes the impact of tariffs of approximately $2.5 million, or $0.02 per share.
Shares collapsed $13.43, or 6.2%, to $201.89
