Palo Alto Networks (PANW) reported fiscal first-quarter earnings that topped analyst estimates while revenue met views. PANW stock climbed on Friday as January-quarter guidance for revenue, profit and billings met expectations.
The cybersecurity firm reported results after the market close on Thursday.
Palo Alto earnings for the October period were $1.64 per adjusted share, up two cents from the year-earlier period.
Including acquisitions, revenue rose 32% to $1.2 billion, the company said. Billings jumped 28% to $1.4 billion, compared with estimates for nearly 21% growth.
Analysts expected Palo Alto to report earnings of $1.57 a share on sales of $1.2 billion. A year earlier, Palo Alto earnings were $1.62 a share on sales of $946 million.
“Against investor concern about supply chain issues, Palo Alto delivered a strong quarter with broad-based outperformance including product growth,” said RBC Capital analyst Matthew Hedberg in a report. “Product revenue grew 25% to $296 million and topped expectations of 11% growth.”
For the current quarter ending in January, Palo Alto expects earnings in a range of $1.63 to $1.66 per share, with revenue of $1.275 billion. Palo Alto stock analysts had predicted earnings of $1.64 a share on revenue of $1.27 billion.
PANW Stock: Billings Guidance Meets Expectations
The company predicts billings of $1.52 billion compared with analyst estimates of $1.51 billion.
Palo Alto stock added 2% to close at 530.34 on the stock market today following the earnings call with analysts. PANW initially fell after it released its report.
PANW stock had gained 45% in 2021 heading into earnings.
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.
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