Palo Alto Networks stock rallies as results, outlook blow past Wall Street estimates

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Palo Alto Networks Inc. shares rallied successful the extended league Monday aft the cybersecurity company’s quarterly results and outlook exceeded Wall Street expectations.

Palo Alto Networks PANW, +1.39% shares surged much than 7% aft hours, pursuing a 1.4% emergence successful the regular league to adjacent astatine $372.57.

Palo Alto Networks reported a fiscal fourth-quarter nonaccomplishment of $119.3 million, oregon $1.23 a share, compared with a nonaccomplishment of $58.9 million, oregon 61 cents a share, successful the year-ago period. Adjusted earnings, which exclude share-based compensation charges and different items, were $1.60 a share, compared with $1.48 successful the year-ago period.

Revenue roseate to $1.22 cardinal from $950.4 cardinal successful the year-ago quarter. Billings, which reflects aboriginal concern nether contract, roseate to $1.87 billion, compared with $1.39 cardinal a twelvemonth ago.

Analysts surveyed by FactSet had forecast net of $1.43 a stock connected gross of $1.17 cardinal and billings of $1.71 billion. Palo Alto Networks had forecast $1.42 to $1.44 a stock connected gross of $1.17 cardinal to $1.18 billion, and billings of $1.7 cardinal to $1.72 billion.

“Our beardown Q4 show was the culmination of executing connected our strategy passim the year, including merchandise innovation, level integration, concern exemplary translation and investments successful our go-to-market organization,” said Nikesh Arora, Palo Alto Networks president and main executive, successful a statement. “In particular, we saw notable spot successful ample lawsuit transactions with strategical commitments crossed our Strata, Prisma and Cortex platforms.”  

Palo Alto Networks expects adjusted fiscal-first 4th net of $1.55 to $1.58 a stock connected gross of $1.19 cardinal to $1.21 cardinal and billings of $1.29 cardinal to $1.31 billion, portion analysts had forecast $1.59 a stock connected gross of $1.15 cardinal and billings of $1.25 billion.

For the year, Palo Alto Networks expects adjusted net of $7.15 to $7.25 a stock connected gross of $5.28 cardinal to $5.33 billion, portion analysts expect $7.03 a stock connected gross of $5 billion. The institution besides sees billings of $6.6 cardinal to $6.65 billion, portion analysts forecast $6.18 billion.

Palo Alto Networks shares are up 38% for the past 12 months. In comparison, the ETFMG Prime Cyber Security ETF  HACK, +1.38%  is up 29%, portion some the S&P 500 index  SPX, +0.85% and the tech-heavy Nasdaq Composite Index  COMP, +1.55% are up 32%.

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