Nir Tzuk (YouTube / WatchDox, Wikipedia)
Shares of Palo Alto Networks rose 12% in trading on Thursday, after the network security developer announced third-quarter results that came in stronger-than-expected results. Highlights of the report: Adjusted earnings of $ 1.79 per share, compared to $ 1.68 per share that analysts expected, according to Refinitive; Revenue: $ 1.39 billion, compared to $ 1.36 billion expected by analysts.
Palo Alto said revenue grew 29% year-on-year in the quarter ended April 30, according to the statement. Revenue jumped 30% in the previous quarter. “We saw strong growth in the third quarter, which is a testament to the consistent performance of our teams in leveraging strong demand trends for cyber security,” the company’s CEO Nikash Arora was quoted as saying.
Both in the US and abroad, commodity prices are rising. But so far it has not been a big challenge for the company. “We do not see the pressure from the point of view of inflation or the reduction of economic activity,” Arora said. In the quarter, Palo Alto announced the next-generation firewall, available exclusively through Amazon’s public cloud. The company has also announced a tool that will help companies identify vulnerabilities in the software supply chain due to issues resulting from malicious updates to the software Orion of SolarWinds.
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The principals have raised their guidelines for the full fiscal year. They now expect adjusted earnings of $ 7.43 to $ 7.46 per share on revenue of $ 5.481 to $ 5.501 billion. The directive takes into account wage inflation, Arora said, in part because of the proximity of Santa Clara, the seat of Palo Alto Networks, California, where technology companies are big in Silicon Valley.
“We did not hire as many people as we expected,” he said. “This is a very tight job market at its current point. However, my personal opinion is that the job market is going to be easier in the next six to 12 months.” Cursed said company employees left to join various start-ups six months ago. Now that’s changed.
“Rationalization in the market causes people to do mental arithmetic and say, ‘Wait, do I really want to go take that step?'” Arora said. Before closing the trade, the stock has fallen almost 21% since the beginning of 2022, while indexing S&P 500 Decreased by about 18% at the same time.
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