Palo Alto Networks Inc. saw a significant boost in its share price during after-hours trading on Friday, thanks to better-than-expected earnings and optimistic forecasts for profit and billings. The cybersecurity company delivered its report on an uncommon schedule.
The stock, with the ticker symbol PANW, surged over 9% in the extended session following a 1% gain during regular trading hours. It closed at $209.69.
Impressive Projections for the First Quarter
Palo Alto Networks predicts adjusted earnings of $1.15 to $1.17 per share in the first quarter. Additionally, revenue is anticipated to fall within the range of $1.82 billion to $1.85 billion, with billings expected to reach $2.05 billion to $2.08 billion. Notably, analysts had previously estimated earnings of $1.11 per share, along with revenue of $1.93 billion and billings of $2.04 billion for the same period.
Annual Forecasts and Growth Expectations
Looking ahead, Palo Alto Networks is optimistic about its annual performance. The company expects to achieve earnings ranging from $5.27 to $5.40 per share, while revenue is projected to reach $8.15 billion to $8.2 billion. Furthermore, billings are forecasted to hit $10.9 billion to $11 billion. In comparison, analysts tracked by FactSet had previously estimated earnings of $4.98 per share, revenue of $8.38 billion, and billings of $10.81 billion for the year.
Understanding Billings as a Metric
Palo Alto Networks defines billings as the total revenue plus the change in total deferred revenue, net of acquired deferred revenue, during the given period. This metric is used to account for subscriptions and provides valuable insights into the company’s financial performance.
Overall, Palo Alto Networks’ strong earnings report and positive forecasts signal a promising future for the cybersecurity company, further bolstering investor confidence.
Palo Alto Networks Announces Strong Fiscal Fourth-Quarter Results
Palo Alto Networks, a leading cybersecurity company, has reported impressive financial results for the fourth quarter of its fiscal year. The company’s net income for the period was $227.7 million, or 64 cents per share, compared to just $3.3 million, or a penny per share, in the same period last year.
Adjusted earnings, which exclude stock-based compensation expenses and other items, stood at $1.44 per share, a significant increase from 80 cents per share in the year-ago quarter.
The company also experienced substantial growth in its revenue and billings. Revenue rose from $1.55 billion in the year-ago quarter to $1.95 billion in the current quarter, marking a notable increase. Additionally, billings saw an 18% rise, reaching $3.2 billion.
These impressive results surpassed analysts’ expectations. According to a survey by FactSet, analysts had predicted adjusted earnings of $1.29 per share on revenue of $1.96 billion and billings of $3.18 billion.
Nikesh Arora, Chairman and Chief Executive of Palo Alto Networks, highlighted the company’s strong execution and increasing customer adoption of its platformization strategy. Arora stated, “Our strategy is resonating with a growing number of our customers, driving continued consolidation to deliver superior security outcomes.” He also expressed delight in the market reception for their AI-based security automation platform, XSIAM.
Palo Alto Networks isn’t the only tech giant with a focus on AI. Nvidia Corp., which also holds a significant stake in AI, is set to report its results after the bell on Wednesday.
This year, Palo Alto Networks joined the prestigious S&P 500 index SPX, further solidifying its position as a leading player in the cybersecurity industry.