Housing experts revise mortgage rate forecasts for remainder of 2024

Housing experts have revised their mortgage rate forecasts for the remainder of 2024. This comes as Palo Alto Networks shares experienced a decline of nearly 9% in after-hours trading on Monday following the company’s disappointing outlook for the current quarter and full year. The company’s subdued guidance has raised concerns about its recent move to a consolidated cybersecurity platform, which was aimed at driving growth among cautious enterprise customers. However, despite the stock’s decline, there may be some support for Palo Alto Networks shares in the $281 to $295 range, based on the 50-day moving average and price action over the past five months.
After briefly dipping to the 200-day moving average (MA) in early April, Palo Alto Networks shares have been cautiously climbing, surpassing the 50-day MA later that month. Recent trading volumes have shown an increase, indicating a bullish momentum leading up to the company’s quarterly results. However, this positive sentiment is expected to come to an abrupt halt on Tuesday due to the company’s underwhelming outlook.

In light of the selling pressure surrounding the earnings report, investors should closely monitor a specific region on the chart, ranging from $281 to $295. This area represents a zone of support as it aligns with the 50-day MA and reflects prior price action over the past five months.

In after-hours trading, the stock closed at $295.61, marking an 8.7% decline compared to the end of the regular session.

Overall, the lackluster outlook from Palo Alto Networks failed to impress investors.
For the fiscal fourth quarter ending in July, the Silicon Valley-based company provided a revenue guidance of $2.15 billion to $2.17 billion, with the midpoint of $2.16 billion aligning with analysts’ expectations. In terms of billings, which account for deferred revenue, the company expects them to fall between $3.43 billion and $3.48 billion for the period, slightly below the anticipated $3.45 billion.

For the full fiscal year, the company maintained its billings guidance, projecting a range of $10.13 billion to $10.18 billion. This aligns with its previous forecast of $10.10 billion to $10.20 billion.

To drive growth in a market where enterprise spending on cybersecurity solutions is cautious, the company has shifted its focus to a consolidated security platform. It has introduced various initiatives, including free product offers, to attract corporate customers.
According to Third Bridge analyst Jordan Berger, minor revisions in full-year FY24 guidance did not indicate a significant increase in momentum, and it remains to be seen whether there will be downstream benefits from increased platform buy-in from large customers. This sentiment was echoed by lackluster guidance for the Q4 FY24 period.

For the three-month period ending April 30, the cybersecurity company reported adjusted earnings of $1.32 per share on net sales of $1.98 billion. Both figures exceeded analysts’ forecasts, which were projected at $1.25 per share and $1.97 billion, respectively. However, billings for the period fell slightly short of the consensus at $2.33 billion, compared to the expected $2.34 billion.