Shares of cybersecurity firm Palo Alto Networks (PANW) - Get Palo Alto Networks, Inc. Report jumped more than 10% in after-hours trading Tuesday after the company beat analysts' top- and bottom-line second-quarter expectations and announced a $1 billion share buyback plan.
The Santa Clara, CA-based company reported a 30% increase in revenue year over year to $711.2 million, and adjusted earnings of $1.51 per share. Analysts polled by FactSet were expecting the company to report revenue of $682 million and earnings of $1.22 per share.
"We remain focused on delivering to our customers the best security in the market," said Nikesh Arora, chief executive officer of Palo Alto Networks. "Our recently introduced products and services, including Cortex XDR, Traps 6.0, PAN-OS 9.0, the DNS Security Service subscription, and our fastest ever Next-Generation Firewall, coupled with the proposed acquisition of Demisto, further enhance and expand our capabilities, making security simpler and more effective through the use of artificial intelligence, analytics, automation and orchestration."
For the third quarter, the company forecast revenue to range between $697 million and $707 million, representing growth between 23% and 25%. Analysts are currently expecting the company to generate revenue of $697 million.
The company said earnings in the third quarter are expected to range between $1.23 and $1.25 per share.
The company also announced that its board of directors approved a $1 billion share repurchase program.
Shares rose $24.27 to $259.82 in after-hours action.
Palo Alto Networks is a holding in Jim Cramer's Action Alerts PLUS charitable trust.