Palo Alto Networks shares dive over 20% amid lower guidance

By Ovunc Kutlu

ISTANBUL (AA) - US-based multinational cybersecurity firm Palo Alto Networks saw its shares dive more than 20% on Tuesday due to lower financial guidance.

The Santa Clara-based company's stock price plummeted 20.8% to $289.98 per share in after-hours trading on the Nasdaq after closing the session at $366.09 a share.

The steep decline came after Palo Alto Networks lowered its full-year guidance for billings and revenue.

Total billings are expected to come in the range of $10.1 billion to $10.2 billion for the fiscal year 2024, according to the firm's financial results statement released after market close late Tuesday.

The figures are down from the previous guidance of $10.7 billion and $10.8 billion.

Total revenue is estimated to come in the range of $7.95 billion to $8 billion for the fiscal year 2024, also down from the previous guidance of $8.15 billion to $8.2 billion.

Financial guidance, a company's estimates of its future outlook for the public, includes projections for earnings, revenue and capital spending. It can be used by investors and analysts to adjust their expectations about a firm and its stock price.