Why is Palo Alto Networks reporting earnings Friday afternoon? The unusual timing attracts hypothesis.

Palo Alto Networks is a brand new entrant to the index, having gotten the nod in June.

Wolfe Research analyst Joshua Tilton mentioned the Friday reporting date “has left investors very uneasy,” particularly for the reason that fiscal fourth-quarter report can also be anticipated to convey a brand new full-year outlook in addition to targets for the medium time period.

In holding with the Friday earnings theme, Tilton used soccer metaphors to debate the scenario dealing with Chief Executive Nikesh Arora.

“While we don’t expect the news from the field to be perfect, we remind investors that this is Nikesh’s time to shine under the Friday Night Lights, and he will not go down without a fight,” Tilton wrote. “So while investor sentiment would have you believe that the QB has a torn ACL, our checks indicate that it’s likely a sprained ankle and that even with a QB on one leg, PANW can convert on 4^th down and deliver a 4Q billings beat of 3%.”

Tilton charges the inventory at outperform with a $255 goal worth.

In a Tuesday be aware, Guggenheim analyst John DiFucci, who has a impartial score on Palo Alto Networks, mentioned that “investors must feel like yo-yos over the last month.”

While the corporate has “performed admirably through a difficult macro period,” DiFucci mentioned that his early discipline checks for the fiscal fourth quarter hinted Palo Alto Networks “wasn’t immune.”

“Concerns were exacerbated by the company’s choice to uncharacteristically release earnings on a Friday (Aug 18) after the close in the summer, followed by a two-hour conference call, and the offer to conduct one-on-one calls with the sell-side over the weekend to clarify issues,” DiFucci mentioned. Then, the analyst added, latest discipline checks confirmed end-of-the-quarter energy, “bringing things full circle.”

“We’ve been asked what this all means and frankly, we don’t know,” DiFucci mentioned. “In our experience, it’s not usually positive when management’s actions differ materially from the norm but given the complexity of Palo Alto Network’s business model and sometimes opaque disclosure, it’s hard to be sure of anything.”

That mentioned, DiFucci expects fourth-quarter outcomes to be in step with expectations, however he’s extra cautious in regards to the firm’s forecast.

Analysts surveyed by FactSet, on common, count on fiscal fourth-quarter earnings of $1.29 a share on income of $1.96 billion.

On Tuesday, Morgan Stanley analyst Hamza Fodderwala, who has an obese score on Palo Alto Networks and considers the inventory a “top pick,” sees a “more favorable setup” into earnings, and mentioned the bizarre timing might presumably maintain good news.

Fodderwala, who sees the corporate “firmly on the path” to a $100 billion market cap — in contrast with its present $67 billion — mentioned Palo Alto Networks might announce a possible nine-figure U.S. Department of Defense contract that would drive income and billings.

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“We think Palo Alto Networks could potentially win its largest-ever deal with the DoD worth an estimated $150-$200 million over the next 5 years, if deployed departmentwide,” Fodderwala mentioned in a be aware, reminding traders that the corporate introduced its final nine-figure DoD deal simply earlier than its October-quarter earnings launch final yr.

Read from final quarter: Palo Alto Networks, software program business to bear AI ‘transformation’ over subsequent 12 months, CEO says

Palo Alto Networks shares are up 55% yr so far, whereas the ETFMG Prime Cyber Security exchange-traded fund
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is up 15%, and the S&P 500 is up 16%.