Palo Alto Networks stock is up after earnings

Palo Alto Networks stock rose sharply after the security software provider reported better-than-expected results for the second quarter of its fiscal year ending Jan. 31.

The results should give comfort to investors who are confident that corporate spending on security will hold up well even in a tight economic environment.

Palo Alto Networks (stock ticker: PANW) stock was up 10% in premarket trading Wednesday, at $183.47.

For the quarter, Palo Alto Networks reported revenue of $1.7 billion, up 26% from a year earlier, and ahead of both the company’s guidance range of $1.63 billion to $1.66 billion, and the street consensus forecast of $1.65 billion.

On an adjusted basis, the company earned $1.05 per share in the quarter, well ahead of the guidance range of 76 cents to 78 cents. Street consensus had called for earnings per share of 78 cents. Under generally accepted accounting principles, the company earned 25 cents a share.

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Billings were $2 billion, up 26%, and ahead of the company’s forecast of $1.94 billion to $1.99 billion.

“We continue to see our teams perform well in the midst of macroeconomic challenges, helping customers standardize their security structures,” Niksh Arora, CEO of Palo Alto Networks, said in a statement.

for the April quarter. The company’s revenue ranges from $1.695 billion to $1.725 billion, up 22% to 24%, with non-GAAP earnings of 90 cents to 94 cents per share. Street consensus estimates had called for revenue of $1.74 billion and earnings of 78 cents per share. The company said billings should range from $2.20 billion to $2.25 billion, an increase of 22% to 25%.

Palo Alto Networks expects full-year revenue of $6.85 billion to $6.91 billion, up 25% to 26%, with non-GAAP earnings of $3.97 to $4.03 per share, and billings of $9.1 billion to $9.2 billion. .

The company’s revenue guidance was unchanged from the prior quarter, but earnings guidance increased from the prior range of $3.37 to $3.44 per share. Prior billing guidance for this year was from $8.95 billion to $9.10 billion.

Write to Eric J. Savitz at [email protected]

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