SECURITY
SECURITY
SECURITY
Palo Alto Networks shares surge on strong earnings beat
Shares in Palo Alto Networks Inc. surged in late trading after the network management and security firm beat expectations in its fiscal second quarter.
For the quarter ended April 30, Palo Alto Networks reported a profit before costs such as stock compensation of $193.1 million, or $1.79 per share, up from $139.5 million or $1.38 per share in the same quarter of last year. Revenue rose 29%, to $1.4 billion. Analysts had expected an adjusted profit of $1.68 a share on revenue of $1.36 billion.
During the quarter, the company teamed with Amazon Web Services Inc. in March to provide a next-generation firewall service for securing AWS deployment. Palo Alto Networks Cloud NGFW for AWS, exclusively available on AWS, delivers Palo Alto Networks’ security to organizations in a few clicks.
Palo Alto also launched Prisma Cloud Supply Chain Security in the quarter. The service offers a complete view of potential vulnerabilities or misconfigurations in an organization’s software supply chain. Using the service, users can trace vulnerabilities and quickly fix them.
Looking forward, Palo Alto Networks is predicting an adjusted profit of $2.26 to $2.29 a share in its fiscal third quarter on revenue of $2.32 billion to $2.35 billion. For the full fiscal year 2022, the company is predicting an adjusted profit of $7.43 to $7.46 a share on revenue of $5.481 billion to $5.501 billion.
For the full fiscal year, analysts had been predicting non-GAAP EPS of $7.29 on revenue of $5.46 billion. Suffice to say, there is not a single metric in Palo Alto Network’s earnings report that they didn’t surpass predicted numbers.
“We saw strong top-line growth in Q3, which is a testament to our teams’ consistent execution in capitalizing on the strong cybersecurity demand trends,” Nikesh Arora, chairman and chief executive officer of Palo Alto Networks, said in a statement. “On the back of this strength across our portfolio, we are again raising our guidance for the year across revenue, billings and earnings per share.”
Investors liked the numbers. After a day the Nasdaq fell 0.26%, shares in Palo Alto Networks rose more than 11% in late trading.
Image: Palo Alto Networks
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