Palo Networks CEO says the company saw “notable strength in large customer transactions”
Shares of Palo Alto Networks (PAWN) are on the rise on Tuesday morning after the security hardware and software company reported better-than-expected earnings and a robust profit forecast amid a wave of cyberattacks on U.S. companies over the past year. Following the quarterly results, several Wall Street analysts raised their price targets on the shares, with Barclays analyst Saket Kalia saying he sees a fundamental shift in the way enterprises are buying security which is benefiting Palo Alto.
RESULTS: Palo Alto Networks reported fourth quarter adjusted earnings per share of $1.60 and revenue of $1.2B, both above the expected $1.43 and $1.17B, respectively. The company also said it sees first quarter adjusted EPS between $1.55-$1.58, with consensus at $1.60, revenue between $1.19B-$1.21B, with consensus at $1.15B, and total billings of $1.29B-$1.31B. For full year 2022, Palo Alto sees adjusted EPS between $7.15-$7.25, with consensus at $7.09, revenue of $5.275B-$5.325B, with consensus at $4.98B, and total billings between $6.60B-$6.65B
“Our strong Q4 performance was the culmination of executing on our strategy throughout the year, including product innovation, platform integration, business model transformation and investments in our go-to-market organization,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “In particular, we saw notable strength in large customer transactions with strategic commitments across our Strata, Prisma and Cortex platforms.” “We are pleased to deliver strength across all the key total shareholder return drivers – top line, operating margin and free cash flow conversion,” said Dipak Golechha, CFO of Palo Alto Networks. “We look forward to updating investors on our long-term goals at our upcoming analyst day on September 13th.”
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