Why CrowdStrike, Palo Alto Networks And ZScaler Shares Are Falling Today

Shares of several cybersecurity companies, including CrowdStrike Holdings Inc CRWDPalo Alto Networks Inc PANW, and Zscaler Inc ZS, are trading lower Thursday after Fortinet Inc FTNT issued guidance that was in-line with estimates and slightly lowered its full-year services revenue outlook.

  • FTNT Revenue: $1.03 billion was in-line with estimates
  • FTNT EPS: 24 cents beat the estimate of 22 cents

Fortinet expects third-quarter revenue to be between $1.105 billion and $1.135 billion versus the estimate of $1.12 billion. The company expects third-quarter adjusted earnings to be between 26 cents and 28 cents per share versus the estimate of 27 cents per share. 

Full-year revenue is expected to be in the range of $4.35 billion to $4.4 billion versus the estimate of $4.38 billion. Full-year services revenue is expected to be between $2.62 billion and $2.67 billion. Full-year adjusted earnings are expected to be between $1.01 and $1.06 per share.

UBS lowered its price target on Fortinet from $68 to $65 following the company’s results. Barclays also cut its price target from $80 to $77.

Datadog Inc DDOG also issued cautious guidance that was in line with estimates. The company is cloud-native and focuses on analyzing machine data. Datadog’s outlook may be adding to the pressure on cybersecurity names Thursday. 

See Also: Datadog Stock Slides Post Q2 Results

CRWD, PANW, ZS Price Action: CrowdStrike was down 5.65% at $184.29, Palo Alto was down 6.49% at $494.77 and Zscaler was down 4.14% at $158.45 at press time, according to Benzinga Pro.

Photo: Pete Linforth from Pixabay.



Image and article originally from www.benzinga.com. Read the original article here.