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.
“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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