Palo Alto Networks Tops Fiscal Third-Quarter Estimates

Cybersecurity company Palo Alto Networks beats revenue and earnings estimates as pandemic boosts remote working.
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Palo Alto Networks, Inc.  (PANW) - Get Report topped analyst revenue and earnings estimates for its fiscal third quarter, it announced after the bell on Thursday. 

The company reported revenue of $869.4 million and non-GAAP net income of $1.17 a share.

Palo Alto Networks had been expected to report net income of 94 cents a share, on sales of $831.1 million, based on a FactSet survey of 34 analysts.

In the same period a year ago, the company posted earnings of $1.31 a share on sales of $726.6 million.

"The world will likely be in a state of transition over the next 12 to 18 months due to the COVID-19 pandemic,” Nikesh Arora, chairman and CEO of Palo Alto Networks, said in a statement. “We believe this will prompt key trends to accelerate, including remote working models, shift to the cloud, and focus on AI/ML and automation to drive effective cybersecurity outcomes," he added.

For its fiscal fourth quarter, the company forecast total revenue in the range of $915 million to $925 million and diluted non-GAAP net income per share in the range of $1.37 to $1.40, including net expenses of 6 cents a share related to the company's April acquisition of CloudGenix.

Analysts had been forecasting revenue of $916.8 million and net income of $1.31 a diluted share, according to FactSet.

For the full fiscal year, the company forecast total revenue between $3.373 billion and $3.383 billion and diluted non-GAAP net income per share between $4.78 and $4.81.

Analysts had been forecasting full-year revenue of $3.3 billion, according to FactSet.

Shares of Palo Alto Networks rose $14.09, or 6.1%, to $243.59 in after-hours trading. The stock fell 2% in the regular session.