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Palo Alto Networks shares gain on earnings, revenue beat

Published 17/11/2022, 21:40
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By Sam Boughedda

Palo Alto Networks (NASDAQ:PANW) shares rose in after-hours trading Thursday on the back of its fiscal first-quarter earnings, which topped analyst consensus expectations.

The cybersecurity company reported an adjusted net income of $266.4 million, or $0.83 per share, compared with an adjusted net income of $170.3M, or $0.55 per share, during the same period last year. Revenue rose 25% year over year to $1.6 billion.

Analysts expected earnings per share of $0.69 on revenue of $1.55B.

The company's fiscal first-quarter billings grew 27% year-over-year, coming in at $1.7B.

"We exceeded our top-line guidance while generating $1.2 billion in free cash flow and expanding our operating margins," said Dipak Golechha, the chief financial officer of Palo Alto Networks. "We will continue to balance growth with profitability and cash generation to further strengthen our position in the market."

Palo Alto shares are currently up over 6% following the earnings release after closing the regular session down 1.6%.

Looking ahead, the company sees fiscal second-quarter total billings between $1.94B and $1.99B, representing a potential growth of 21% to 24%, while revenue is seen from $1.63B to $1.66B. Adjusted earnings per share are expected to be between $0.76 and $0.78.

For the full-year 2023, Palo Alto sees billings in the range of $8.95B to $9.1B, revenue between $6.85B to $6.91B, and adjusted earnings per share from $3.37 to $3.44.

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