Palo Alto Networks (PANW) on Thursday reported fiscal third-quarter earnings and revenue, which is at the top of estimates. PANW stocks have popped as its outlook for the July quarter has exceeded expectations, despite supply chain constraints.
PANW stock rose 9.8% to close at 479 today on increased trading in the stock market.
Palo Alto said the earnings per share rose 30% to 29 1.29 on a consistent basis. Including acquisitions, revenue rose 29% to 1.4 billion, the agency said. Analysts had expected earnings of 68 1.68 per share on sales of $ 1.36 billion.
Further, billing came in at $ 1.8 billion, up 40% from a year earlier, compared to the 1.6 billion estimate. The cyber security company released its April-quarter earnings after the market closed.
“Palo Alto reported results were better than expected and highlighted by a 40% billing increase versus a 25% consensus,” RBC Capital analyst Matthew Hedberg said in a note to clients, adding that the next generation annual recurring revenue of 65 % Increased to 1.6 billion.
PANW Stock: Guidance Tops Estimation
For the current quarter ending in July, Palo Alto said it expects earnings per share in the পরিস 1.54 billion revenue range between $ 2.26 and $ 2.29.
Analysts estimated earnings of $ 2.22 per share over 1.53 billion. Also, Palo Alto forecasts $ 2.33 billion in billing, compared to analysts’ estimates of $ 2.23 billion.
Meanwhile, the company has spent $ 3.4 billion on 10 acquisitions in the last three years. With the roots of the “firewall” network security market, Palo Alto aims to create a comprehensive cloud-based security platform.
According to the IBD stock check-up, heading into the Palo Alto Earnings report, the cyber security stock had a relative strength rating of 86 out of the best-possible 99s. In 2022, PANW stocks fell 21%.
Follow Reinhard Krauss on Twitter reinhardtk_tech For updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
You may also like:
Join IBD Live and read top charts and learn trading techniques from professionals
How to use the 10-week moving average for buying and selling