Palo Alto Networks rockets as billings, guidance soothe investor worries over slowdown
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Palo Alto Networks (NASDAQ:PANW) jumped more than 6% in extended-hours trading on Monday after the cyber security company posted fourth-quarter results that topped expectations and issued guidance that seemed to assuage fears of a slowdown in the sector.
For the period ending July 31, Palo Alto (PANW) earned an adjusted $2.39 per share on $1.6B in sales, up 27% year-over-year. Billings for the fourth-quarter rose 44% year-over-year to $2.7B, the company said.
Looking ahead to the first-quarter, the Nikesh Arora-led Palo Alto (PANW) said first-quarter billings would be between $1.68B and $1.7B, while revenue is expected to be between $1.54B and $1.56B. Analysts are expecting billings of $1.74B and $1.54B in revenue.
For the full-year, Palo Alto (PANW) expects sales to be between $6.85B and $6.9B, with earnings per share expected to be between $9.40 and $9.50 per share. Analysts are expecting the company to generate $6.76B in revenue and earnings of $9.30 per share.
Palo Alto Networks (PANW) also said it would split its stock three-for-one and it will buy back up to $915M in stock.
The company is set to host a conference call at 4:30 p.m. EST to discuss the results.
Earlier this month, investment firm Wedbush Securities listed Palo Alto Networks (PANW) among its top three tech stocks going into the end of the year.