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Palo Alto Stock Pops On Earnings Beat, Sales And Billings Guidance 


Cybersecurity firm Palo Alto Networks (PANW) reported fiscal fourth-quarter earnings and revenue on Monday that topped analyst estimates. PANW stock rose in extended trading as October-quarter and fiscal 2022 guidance came in above Wall Street targets.




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Including acquisitions, Palo Alto earnings for the July quarter were $1.60 per adjusted share, up 8% from the year-earlier period. Revenue rose 28% to $1.2 billion, the company said. Billings jumped 34% to $1.9 billion, blowing past estimates for 23% growth.

Analysts expected earnings of $1.43 a share on sales of $1.17 billion. A year earlier, Palo Alto earnings were $1.48 a share on sales of $950.4 million.

For the current quarter ending in October, Palo Alto expects earnings in a range of $1.55 to $1.58 per share, with revenue of $1.2 billion. Analysts had predicted earnings of $1.60 a share on revenue of $1.15 billion.

PANW Stock: Billings Guidance Tops Views

Palo Alto forecast billings of $1.3 billion compared with analyst estimates of $1.25 billion.

Palo Alto stock popped 5.9% to near 395 in extended trading on the stock market today. Heading into the earnings report, Palo Alto stock had retreated from an all-time high of 406.92 set on Aug. 5.

For fiscal 2022, Palo Alto forecast revenue in a range of $5.27 billion to $5.32 billion and earnings in a range of $7.15 to $7.25 a share. Analysts had projected revenue of $5 billion and earnings of $7.09 a share.

Meanwhile, the company has spent over $3 billion making 10 acquisitions over the past three years. With roots in the “firewall” network security market, Palo Alto aims to build a broad cloud-based security platform.

Analyst Day Set For Sept. 13

Palo Alto holds an analyst day on Sept. 13, where it’s expected to discuss cybersecurity trends and its cloud platform.

The cybersecurity firm on Aug. 10 made changes to its management team. Palo Alto said company President Amit Singh would shift to chief business officer, where he’ll focus on strategic relationships with large customers. Palo Alto brought in B.J. Jenkins, formerly the chief executive of Barracuda Networks, as its new president.

Additionally, PANW stock has an IBD Relative Strength Rating of only 63 out of a possible 99, according to IBD Stock Checkup.

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IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists on issues such as PANW stock, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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