Palo Alto Networks shares jump after firm lifts full-year prediction
Key takeaways:
- Palo Alto Networks beat expectations on the top and lowest lines and full-year guidance.
- The firm declared software to help businesses deal with virtual supply-chain problems.
Palo Alto Networks' stock increased 12% in extended trading on Thursday after the network security hardware maker declared fiscal third-quarter results more robust than critics had hoped.
Here's how the firm did:
- Profits: $1.79 per share, adjusted, vs. $1.68 per share as predicted by analysts, according to Refinitiv.
- Revenue: $1.39 billion, vs. $1.36 billion as expected by critics, according to Refinitiv.
According to a statement, Palo Alto Networks said earnings rose 29% year-over-year in the quarter, which ended on April 30. Incomes jumped 30% in the last quarter.
"We noticed a strong top-line increase in Q3, which is a testament to our teams' consistent performance in capitalizing on the strong cybersecurity demand trends," Palo Alto Networks CEO Nikesh Arora said.
Palo Alto Networks has kept Russian cyberattacks since the fight broke out during the quarter. Arora told critics on a conference call, seeing greater interest in security from corporations and government agencies across Europe.
Supply shortages are posing challenges, Arora stated.
Higher component and shipping prices limited the firm's revised gross margin in the quarter, said Dipak Golechha, its finance chief. Arora noted that restrictions "can continue for yet another year," Arora said.