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PANW Stock Slips As Revenue, Profit And Billings Guidance Meet Views


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.




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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.

Shares hold a Relative Strength Rating of 93 out of a best-possible 99, according to IBD Stock Checkup. But PANW stock is extended from a buy zone.

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.

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

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