PANW shares show as earnings and higher revenue estimates

Palo Alto Networks (bano) for the third-quarter financial profits and revenues that exceeded estimates. PANW stock stood out as its forecast for the July quarter came in above expectations despite supply chain constraints.

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“The momentum of big deals and effective cross-platform strategies led to strength that was broad across product categories and geographies,” Cowen analyst Shaul Eyal said in a report. “Superior supply chain management helps drive stock gains.”

The cybersecurity firm reported earnings for the April quarter after the market closed on Thursday. PANW stock rose 11.1% to 484.84 in early trading on stock market today.

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

“Supply chain constraints have outpaced supply demand, as the company continues to receive its fourth-generation firewall products and higher levels of subscription attachment rates,” Jonathan Ho analyst William Blair said in a report.

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

“Palo Alto reported results that beat expectations and highlighted 40% billing growth versus the 25% consensus,” RBC Capital analyst Matthew Hedberg said in a note to clients. Revenue grew 65% to $1.6 billion.

PANW Stock: Top Guidance Estimates

For the current quarter ending in July, Palo Alto said it expects earnings per share in a range of $2.26 to $2.29 on revenue of $1.54 billion.

Analysts had expected earnings of $2.22 per share on revenue of $1.53 billion. Also, Palo Alto forecast bills of $2.33 billion compared to analyst estimates of $2.23 billion.

Meanwhile, the company has spent more than $3.4 billion making 10 acquisitions over the past three years. With its roots in the “firewall” network security market, Palo Alto aims to create a large-scale, cloud-based security platform.

“PANW easily has the strongest portfolio of cloud assets among traditional network security vendors,” Mizuho Securities analyst Greg Moskowitz said in a report.

Heading into the Palo Alto earnings report, the cybersecurity stock has a relative strength rating of 86 out of the top 99 possible, according to IBD stock check. PANW stock is down 21% in 2022.

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