Palo Alto Networks’ beat-and-raise quarterly results serve as an outlier inside what has otherwise been a disappointing tech sector. The cybersecurity firm recently reported a notable 16% revenue growth for its fiscal fourth quarter. It climbed to almost $2.2 billion, a nearly $500 million increase over that time last year. That encouraged result bolstered the equipment maker’s shares by close to 5% in after-hours trading.
The company’s CEO, Nikesh Arora, expressed optimism about Palo Alto Networks’ future, as the firm issued upbeat guidance for the current period. The forecasted earnings per share for this quarter is 88 cents to 90 cents. Palo Alto Networks now sees its full-year revenue coming in between $10.48 billion and $10.53 billion. They further expect adjusted earnings in a range of $3.75 to $3.85 per share.
The surging costs clipped the company’s net income to about $254 million, or 36 cents per share. In almost every other metric, there was incredible growth. Palo Alto Networks has large RPOs. These obligations, a measure of their backlog, will be no less than and likely more than $15.4 billion and 15.5 billion. These are all auspicious indicators. From early stumbles to revelations of poor management practices, the company is poised to end the year on a high note.
In a big shakeup at the top of the company, Nir Zuk said he will retire from his post as chief technology officer. Zuk, who co-founded Palo Alto Networks in 2005, has been a driving force behind the company’s technological vision. Lee Klarich, who’s been product chief, will succeed him as CTO.
In the shadow of these events, Palo Alto Networks is in the process of acquiring Israeli identity security provider CyberArk for $25 billion. This acquisition is right in line with the company’s strategy to round out their offering and increase their competitive position in the booming cybersecurity market.
Palo Alto Networks posted another strong earnings report. The popularity of this ETF doesn’t match its stock performance, which has fallen roughly 3% year-to-date as of Monday’s close.
Arora emphasized the company’s commitment to innovation and execution, stating,
“We look for great products, a team that can execute in the product, and we let them run it.” – Nikesh Arora