Palo Alto Networks FQ1 preview: Another rough quarter ahead?
Sundry Photography/iStock Editorial via Getty Images

Palo Alto Networks (NASDAQ:PANW) is scheduled to announce FQ1 earnings results on Thursday, November 17th, after market close.
The cybersecurity company reported Q4 results that topped expectations and issued guidance that seemed to assuage fears of a slowdown in the sector.
Wedbush Securities analyst Dan Ives was bullish of sector performance in the latest quarter, noting checks for the September quarter were "strong" as deal flow continued to hold up despite the uncertain macro economy.
"Overall quarter-end checks were particularly solid" for Palo Alto (PANW) and other vendors as deal activity appeared to track ahead of expectations, Ives explained.
More recently, Loop analysts said they see "signs of accelerating momentum driven by an increase in large deal activity." They also believe supply-chain issues that were plaguing the industry are starting to ease.
However, disappointing early earnings reports and outlooks from peers such as Fortinet (FTNT) and Rapid7 (RPD) have dragged down investor sentiment on the cybersecurity sector across Wall Street.
Investment firm KeyBanc Capital Markets has since said it "uncertain about the [second-quarter] guide" and sees "some softness" in the remaining performance obligations and implied bookings and backlog due to the weakening economy.
Morgan Stanley too sees "far more limited estimates upside going forward", but checks suggest "solid demand and easing supply constraints on firewall sales" It believes a modest beat for the latest quarter and largely unchanged FY23 outlook should be "a good outcome".
MS also views Palo Alto (PANW) as one of the more durable stocks in the sector. Shares have performed better than peers Fortinet (FTNT) and Zscaler (ZS) so far this year.

Over the last 3 months, EPS estimates have seen 15 upward revisions and 10 downward. Revenue estimates have seen 16 upward revisions and 9 downward.
The consensus EPS Estimate is $0.69 (-57.9% Y/Y) and the consensus Revenue Estimate is $1.55B (+24.0% Y/Y).
Over the last 2 years, PANW has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.