Palo Alto Networks (PANW) reported fiscal first-quarter earnings that topped analyst estimates while revenue came in line with views. PANW stock reversed up in extended trading following its earnings call with analysts.
The cybersecurity firm reported results after the market close on Thursday. January-quarter guidance for revenue, profit and billings met expectations.
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.
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 climbed 6.4% to near 553 in extended trading 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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