Palo Alto Networks (NASDAQ: PANW) surged in pre-market buying and selling in the present day and is now buying and selling up near 4% following a powerful earnings beat yesterday. The cybersecurity agency beat expectations for earnings and income, whereas additionally offering a bullish outlook for 2022.
Let’s check out a number of the particulars.
What does Palo Alto Networks Do?
Palo Alto Networks is a California-based cybersecurity firm. Its core merchandise revolve round firewalls and cloud-based safety choices. Working in over 150 nations worldwide, Palo Alto Networks is on the forefront of cloud safety.
It has made quite a lot of savvy acquisitions throughout the business over the previous three years, with 10 corporations being bought for a complete of roughly $3.4 billion. With these corporations now lastly totally built-in inside Palo Alto Networks’ platform, buyers are desirous to see the investments bear fruit.
How did Palo Alto Networks earnings go?
Palo Alto Networks posted earnings per share (EPS) of $1.74 on income of $1.31 billion. These figures outpaced analyst estimates of $1.65 per share and $1.26 billion whereas representing progress of 12% and 30% respectively. CEO Nikesh Arora defined that the corporate,
“continued to profit from energy throughout our three safety platforms, pushed by robust cybersecurity demand, organizations architecting for hybrid work and rising their hyperscale cloud footprints.”
Constructing on this strong progress, the agency additionally outlined robust steerage for the upcoming yr. Billings, income, and EPS all noticed their outlook raised for the approaching yr with robust progress anticipated.
So, ought to I purchase Palo Alto Networks inventory?
Palo Alto Networks represents a powerful option to introduce some cloud-based range to your portfolio. The corporate has proven strong progress over the previous variety of quarters and is about to be one of many main beneficiaries of the worldwide transfer to extra remote-based work.
Following a string of acquisitions, the enterprise is now assured that it has prolonged itself into many necessary areas in cybersecurity that it had recognized as “up-and-coming.” With no additional acquisitions prior to now yr, and the corporate beginning in August that it had no additional plans to buy, plainly part of speedy growth is now over.
As Arora said, “this quarter marks the top of all integrations of our acquired companies over the previous few years.” With its platform now totally built-out, Palo Alto Networks can double down on its work in rising its person base and persevering with to drive recurring income.
Having solely made its debut on the Nasdaq 100 index in December, Palo Alto Networks seems to be residing as much as its billing. With robust progress within the books and ample alternative to proceed to broaden, it appears like a comparatively strong portfolio addition for the approaching few years.
