Market Insider

Palo Alto Networks' shares in freefall after revenue miss

Source: Palo Alto Networks

Palo Alto Networks second-quarter revenue missed forecasts, and its shares plunged nearly 17 percent in after-hours trading on Tuesday.

The network security company reported earnings per share of 63 cents, beating the Thomson Reuters expectation of 62 cents. Revenue missed, coming in at $423 million versus an analyst-expected $430 million.

One-day performance of Palo Alto Networks

"While fiscal second-quarter revenue of $423 million was yet another record for the company, we were disappointed that we came in below top-line expectations due to some execution challenges, which we are moving quickly to address," said Mark McLaughlin, chief executive officer of Palo Alto Networks.

The company closed the trading day at $151.90 per share, 11.5 percent higher than its close three months ago. With the post-market moves, however, the stock now sits 6.6 percent lower than Nov. 28 close at $17.74 as of writing.