Skip to main content

The Biggest Takeaway From Palo Alto's Earnings

Publish date:
Video Duration:

Palo Alto Networks (PANW) - Get Palo Alto Networks Inc. Reportposted adjusted earnings of $1.47 a share, 5 cents better than analysts' estimates, and said it can achieve a compounded annual growth rate of 20% by 2022 for both billings and revenue from its cloud-based security products.

Revenue was $805.8 million, up from $658.5 million a year earlier and ahead of forecasts of $803 million. Billings in Palo Alto's fourth quarter rose rose 22% to $1.1 billion. Analysts had expected billings of $995 million.

For Jim Cramer the biggest takeaway is, "there was a strategy all along and the strategy was to be king of both the firewall and the cloud. Right now, ZScaler (ZS) - Get Zscaler Inc. Report and CrowdStrike (CRWD) - Get CrowdStrike Holdings Inc. Report are the cloud. What Nikesh is saying, you can't just have the cloud and no enterprise. You have to have them both. He's got that strategy. I know that Cisco does too. That strategy is a winner."

Watch the video above to see what else Jim had to say about Palo Alto's Earnings.

Palo Alto Networks is a holding in Jim Cramer's Charitable Trust portfolio, ActionAlertsPLUS. Want to find out when Jim buys or sells PANW? Sign up for a free trial here.

More from Cramer Today

Full Replay: Jim Cramer Breaks Down U.S.-China Trade Talks and Palo Alto's Earnings

Jim Cramer: It's Still a China Market

Jim Cramer: There Are No China Stocks

Premium Pick: Choppy Market Action on Hong Kong News

Latest News: Three Things Coca-Cola's Doing Right and What That Means for the Stock

Apple News: Apple's iPhone Launch -- 3 Key Things to Know

Ask the Expert: How to Use the Trade War to Make Money

TheStreet Explains:What Are Gross Margins?

Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud

Catch Up: Today's Top News Videos Below

Related Videos