PANW - Embedded Expectations Analysis - 2020 07 20
Palo Alto Networks, Inc. (PANW:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 43.8x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management may have concerns about product potential, billings, and demandSpecifically, management may be overstating the outlook for companies with a supporting mobile and cloud-based consumer workforce, and the potential of their FLEXWORK concept. Furthermore, they may have concerns about the sustainability of demand for their enterprise agreements for VM-Series, the potential of Prisma Cloud 4, and transitioning to a remote workforce. Moreover, they may lack confidence in their ability to sustain their billings, execute their heavy branch strategy in their SD-WAN product, and achieve their revenue guidance in the range of $915mn to $925mn. Finally, they may be concerned about the sustainability of cloud transition demand, the potential of cloud-delivered firewall, and the growth stage of their next-gen security
Palo Alto Networks provides a platform that allows enterprises, service providers, and government entities to secure their organizations. The company's platform uses a traffic classification engine that identifies network traffic by application, user, and content and provides security across the network, endpoint, and cloud. The company's product, subscription, and support offerings include: firewall appliances and software; and Panorama, which is a centralized security management solution for global control of various firewall appliances and software deployed on an end-customer's network as well as in their instances in public or private cloud environments as a virtual appliance or a physical appliance.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
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