Palo Alto Networks Shares Surge After Releasing Fiscal Third-Quarter Earnings
May 20, 2022 By MarketDepth
Palo Alto Networks (NASDAQ: PANW), shares surged 12% during extended trading on Thursday after announcing strong fiscal third-quarter earnings and revenue. Furthermore, the company posted a better outlook for the July quarter, than analysts had expected.
Revenue Up 29%
The multinational cybersecurity company reported earnings of USD1.79 per share, compared to the expected USD1.68 a share. Revenue skyrocketed 29%, amounting to USD1.39 Billion, higher than analysts anticipated USD1.36 Billion.
“We saw strong top-line growth in Q3, which is a testament to our teams’ consistent execution in capitalizing on the strong cybersecurity demand trendsOn the b. ack of this strength across our portfolio, we are again raising our guidance for the year across revenue, billings and earnings per share.”Nikesh Arora, chairman and CEO of Palo Alto Networks
The company has witnessed Russian cyberattacks following the war, and is tending to a need for protection from corporations and government agencies throughout Europe, according to Arora.
Rising Costs Affecting Margins
Nevertheless, supply shortages are causing disruptions, Arora said. Rising shipping costs have affected the company’s gross margin within the quarter, said Dipak Golechha, its finance chief.
“Our drive to deliver strong total shareholder return in Q3 was headlined by our revenue growth, while we also balanced operating margin expansion and free cash flow conversion. We look forward to continuing this balance as we close out the year and look to FY23.”Golechha said