Earnings For Cybersecurity Player Palo Alto Top Estimates On Cloud Growth
Cybersecurity firm Palo Alto Networks (PANW) reported fiscal third-quarter earnings Tuesday that topped Wall Street targets while revenue met views. The company's July-quarter sales outlook also met expectations. PANW stock rose on the news.
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Palo Alto earnings for the quarter ending April 30 rose 83% to $1.10 on an adjusted basis. Further, revenue for PANW stock rose 24% to $1.72 billion, including acquisitions.
Analysts expected earnings of 93 cents a share on sales of $1.72 billion.
Billings, a sales growth metric, rose 26% to $2.3 billion, edging by estimates of $2.228 billion.
PANW Stock: Earnings Outlook Above Views
For the current quarter ending in July, the cybersecurity firm predicted Palo Alto earnings of $1.28 per share on revenue of $1.95 billion at the midpoint of its outlook. Meanwhile, analysts had estimated profit of $1.20 a share on revenue of $1.95 billion.
PANW stock rose 3.7% to near 197 in extended trading on the stock market today.
Palo Alto stock had advanced 36% for 2023 through Tuesday's market close. Also, it holds a Relative Strength Rating of 88 out of a best-possible 99, according to IBD Stock Checkup.
With roots in the "firewall" network security market, Palo Alto also aims to build a broad cloud-based security platform. Firewall appliances protect computer networks by blocking online intrusions and monitoring web-based apps.
Also in the April quarter, annual recurring revenue from cloud platform products rose 60% to $2.57 billion. That topped PANW stock analyst estimates of $2.51 billion.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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Source: Investor's Business Daily
