Palo Alto earnings beat estimates in Cider Security acquisition

Palo Alto earnings beat estimates in Cider Security acquisition



Buzz Update Palo Alto earnings beat estimates in Cider Security acquisition

Palo Alto Networks (PANW) Thursday reported earnings and revenue for the quarter ended October that beat Wall Street targets and announced the acquisition of Cider Security for $195 million in cash. PANW stock soared on the news.



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The cybersecurity company announced its results for its fiscal first quarter after the market close.

Palo Alto said earnings rose 50% year over year to 83 cents per share on an adjusted basis. Including acquisitions, revenues increased 25% to $1.6 billion. Analysts had expected earnings of 69 cents per share on sales of $1.55 billion.

Billings, a measure of sales growth, rose 27% to $1.7 billion from estimates of $1.652 billion.

For the current quarter ending in January, Palo Alto forecast earnings of 77 cents per share on revenue of $1.65 billion. Analysts had estimated earnings of 70 cents per share on revenue of $1.65 billion.

PANW shares rise after report

“Next-Gen Security annual recurring revenue increased 67% to $2.1 billion (beating estimates of $1.9 billion) while product revenue of $330 million increased by 12% vs consensus at 9%,” RBC Capital analyst Matthew Hedberg said in a statement.

Palo Alto stock jumped 5% to $164.40 in extended trading in the stock market today. In Thursday’s regular session, shares fell 1.6%.

PANW stock is down 15.6% in 2022 through Thursday’s close. He holds a relative strength rating of 64 out of the best possible 99, according to IBD Stock Check.

Meanwhile, the company has spent more than $3.4 billion on 10 acquisitions over the past three years. With its roots in the “firewall” network security market, Palo Alto aims to build a broad cloud-based security platform.



Firewall devices protect computer networks by blocking online intrusions and monitoring web applications.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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