What happened Shares of Palo Alto Networks (NYSE: PANW) slumped on Tuesday after the cybersecurity company reported mixed quarterly results and reduced its full-year guidance. The stock was down about 15.8% at 12:05 p.m. EST. So what Palo Alto reported fiscal second-quarter revenue of $816.7 million, up 15% year over year but $25.4 million below the average analyst estimate. Billings were up 17% to $998.9 million, while deferred revenue grew 27% to $3.2 billion. Image source: Getty Images. "Fiscal second quarter revenue was below our expectations primarily as a result of continued impact of sales incentives related to our Next-Generation Security products from our prior fiscal year. We have made progress to address this and have implemented several go-to-market programs to reignite our firewall sales growth," said CEO Nikesh Arora. Non-GAAP (adjusted) earnings per share (EPS) came in at $1.19, down from $1.51 in the prior-year period and $0.07 higher than analysts were expecting. The company lost $0.75 per share on a GAAP basis, worse than a $0.03 loss in the same period last year. Along with its results, Palo Alto announced a planned $1 billion accelerated share repurchase transaction. That transaction is in addition to an existing $1 billion share repurchase program. Now what For the third quarter, Palo Alto expects to produce revenue between $835 million and $850 million, up 15% to 17% year over year. Non-GAAP EPS is expected to be between $0.96 and $0.98. For the full year, the company lowered its outlook. Palo Alto now expects revenue of $3.35 billion to $3.39 billion, and non-GAAP EPS of $4.55 to $4.65. Previously, the company predicted revenue of $3.44 billion to $3.48 billion, and non-GAAP EPS of $4.90 to $5.00. Palo Alto is not a cheap stock, trading for more than 40 times non-GAAP earnings guidance even after Tuesday's plunge. For a pricey growth stock, a guidance cut is the last thing investors want to see. 10 stocks we like better than Palo Alto NetworksWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Palo Alto Networks wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Timothy Green has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Palo Alto Networks. Source