PANW News
R40 coverage for Palo Alto Networks, Inc. (PANW).
R40 Coverage
Johnson & Johnson's P/E Went 31 to 11 to 23 Without the Market Changing Its Mind. We Published a Chart Doing the Same Thing.
One outsized quarter distorts a trailing P/E twice — once when it arrives, and again four quarters later when it leaves. The second one is invisible, and our own Palo Alto coverage reasoned from it.
Our Own Explainer Says the Rule of 40 Captures Stock Compensation 'Not Perfectly'. Here Is How Imperfectly.
The four companies our Rule of 40 explainer holds up as the metric working properly pay between 14.5% and 21.5% of revenue in stock-based compensation. Subtract it and two of the four fall below 40. Between a third and four fifths of the free cash flow making up the profitability half of those scores is matched, in the same quarter, by stock issued to employees.
Palo Alto Beat on Everything. The Stock Dropped 6%.
Palo Alto Networks crushed Q2 estimates with $2.6B revenue, 33% NGS ARR growth, and $25B in acquisitions. Wall Street punished weak Q3 EPS guidance — but the revenue acceleration tells a different story.