The PANW share shows itself as income, top estimates for income

Palo Alto Networks (PANW) reported financial and third-quarter earnings that topped estimates. The PANW share rose as the outlook for the July quarter exceeded expectations despite supply chain constraints.

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“Great momentum and effective cross-platform strategies provided strengths that were broadly based across product categories and geographies,” Cowen analyst Shaul Eyal said in a report. “Superior supply chain management helps increase stock gains.”

The network security company reported results for the April quarter after the market closed on Thursday. The PANW share rose 9.9% to 479.75 in morning trading on the stock market today.

Palo Alto said earnings rose 30% to $ 1.79 per share on an adjusted basis. Including acquisitions, revenues increased 29% to $ 1.4 billion, the company said. Analysts expected earnings of $ 1.68 per share on the sale of $ 1.36 billion.

“Supply chain constraints led to demand exceeding supply, as the company continues to see strong reception for its fourth-generation firewall products and higher levels of subscription rates,” William Blair analyst Jonatan Ho said in a report.

Furthermore, invoicing came in at $ 1.8 billion, up 40% from the previous year, compared to estimates of $ 1.6 billion.

“Palo Alto reported results that were ahead of expectations and highlighted by 40% billing growth vs. 25% consensus,” RBC Capital analyst Matthew Hedberg said in a note to customers. Another bright spot, he added, was that the next generation’s annual turnover increased by 65% ​​to $ 1.6 billion.

PANW inventory: Guidance tops estimates

For the current quarter ending in July, Palo Alto said they expect earnings per share in the $ 2.26 to $ 2.29 range with revenue of $ 1.54 billion.

Analysts had estimated earnings of $ 2.22 per share on revenue of $ 1.53 billion. Palo Alto also predicted $ 2.33 billion in billing, compared to analyst estimates of $ 2.23 billion.

Meanwhile, the company has spent over $ 3.4 billion on 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.

“PANW has facilitated the strongest selection of cloud assets among traditional network security providers,” Mizuho Securities analyst Gregg Moskowitz said in a report.

On its way into the Palo Alto earnings report, the cybersecurity stock had a relative strength rating of 86 out of the best possible 99, according to the IBD Stock Check-up. The PANW share has retreated by 21% in 2022.

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

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