Nikesh Arora, CEO of Palo Alto Networks and then President and Chief Operating Officer of SoftBank Group Corp., right, speaks as billionaire Masayoshi Son, President and CEO of SoftBank Group Corp., during a press conference in Tokyo, Japan. , on Wednesday, November 4, 2015. SoftBank’s operating profit increased as the mobile phone company and Internet investment company increased its Japanese wireless subscribers, offsetting the losses of its Sprint Corp. unit. to the United States.
Tomohiro Ohsumi | Bloomberg | Getty Images
Shares of security software and hardware company Palo Alto Networks rose 10% in extended trading on Monday after the company announced better-than-expected gains and a pink profit forecast for the new year.
Here’s how the company did it:
- Earnings: $ 1.60 per share, adjusted, against $ 1.44, as analysts expected, according to Refinitiv.
- Income: $ 1.22 million, up from $ 1.17 expected by analysts, according to Refinitiv.
According to a statement, revenue grew 28% year-on-year in the quarter, which ended July 31, compared to 24% in the previous quarter.
“At the high point of our hardware strategy, we are starting to see upgrades,” CEO Nikesh Arora said in a conference call with analysts. “This has been a trend that had slowed down. People were stopping … We realize the pandemic has shrunk as companies start working again.”
The company raises the prices of hardware products in the low digits as supply constraints have increased component costs, Arora said.
At the same time, Palo Alto Networks can benefit from cloud adoption in all industries and the company can expand its margins by optimizing its own use of cloud resources, Arora said.
Rescue demands grew during the first half of this year, Arora said. The company has 300 online ransomware readiness commitments, which present business opportunities, he said.
In terms of guidance, for the first fiscal quarter, the company requested adjusted revenue of $ 1.55 to $ 1.58 per share for revenue of $ 1,191 to $ 1.21 million. Analysts surveyed by Refinitiv had expected $ 1.59 in earnings per share adjusted for $ 1.15 million in revenue.
For fiscal year 2022, Palo Alto Networks recorded adjusted earnings of $ 7.15 to $ 7.25 per share, with revenue of $ 5.28 to $ 5.33 million. This is well ahead of Refinitiv’s estimates, which were $ 7.07 in adjusted earnings per share and $ 4.99 billion in revenue.
Excluding after-hours commuting, Palo Alto Networks shares had risen about 5% since the beginning of the year, while the S&P 500 index rose almost over the same period. 32%.
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