- Palo Alto Networks beat on the top and bottom lines, and quarterly guidance was ahead of estimates.
- Remote work and cybersecurity concerns have put greater attention on security, the company's CEO said.
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Palo Alto Networks shares rose as much as 6% in extended trading on Thursday after the security hardware and software company announced fiscal second-quarter earnings that were healthier than analysts had expected.
Here's how the company did:
- Earnings: $1.38 per share, adjusted, vs. $1.28 per share as expected by analysts, according to Refinitiv.
- Revenue: $1.07 billion, vs. $1.06 billion as expected by analysts, according to Refinitiv.
Revenue grew 24% year over year in the quarter, which ended on April 30, compared with 25% growth in the previous quarter, according to a statement.
CEO Nikesh Arora said in the statement that there's greater attention on cybersecurity because remote working became popular during the pandemic, as well as a spate of recent cybersecurity issues — presumably including attacks on Microsoft's Exchange Server software, vulnerabilities in SolarWinds software and the recent ransomware attack against Colonial Pipeline that shut down a key fuel pipeline.
During the quarter the company acquired Bridgecrew, a cloud security company, for $156 million.
With respect to guidance, the company said it expects adjusted earnings of $1.42 to $1.44 per share in its fiscal fourth quarter, with $1.165 billion to $1.175 billion in revenue. Analysts polled by Refinitiv had expected $1.42 in adjusted earnings per share and $1.16 billion in revenue.
Notwithstanding the after-hours move, shares of Palo Alto Networks were down about 4% since the start of the year, compared with a gain of roughly 11% for. theS&P 500 index over the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. Eastern time.
This is breaking news. Please check back for updates.
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