Palo Alto Q3 results: ‘getting more interest from nation states around Russia’

on May 20, 2022
Updated: Aug 4, 2022
  • Palo Alto Networks reported its financial results for the first quarter.
  • CEO discussed Q1 report on CNBC's Mad Money with Jim Cramer.
  • Shares of the cybersecurity company jumped 10% in after-hours.

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Shares of Palo Alto Networks Inc (NYSE: PANW) jumped 10% in after-hours trading on strong results for the fiscal third quarter and pleasing guidance for the future.

What Palo Alto Networks Q3 earnings report tells us

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  • Narrowed quarterly loss to $73.2 million versus the year-ago figure of $145.1 million.
  • Per-share loss of 74 cents was well below $1.50 in the same quarter last year.
  • On an adjusted basis, earned $1.79 a share in the recent financial quarter.
  • Total revenue jumped 30% YoY to $1.39 billion, as per the earnings press release.
  • FactSet consensus was for $1.68 of adjusted EPS on $1.36 billion in revenue.
  • Billings and remaining performance obligations were up 40% each in fiscal Q3.

On average, Wall Street sees another 32% upside in this “buy” rated stock that’s still down more than 10% for the year at present.

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Future outlook and CEO’s remarks on Mad Money

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For the full financial year, Palo Alto forecasts its total revenue to fall between $5.48 billion and $5.50 billion. It expects $7.43 to $7.46 of adjusted per-share earnings this year. In comparison, analysts had called for $7.29 of adjusted EPS on $5.47 billion in revenue.

The cybersecurity company forecasts up to 31% growth in its total full-year billings. Commenting on future demand, CEO Nikesh Arora said on CNBC’s Mad Money with Jim Cramer:

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We’re getting more interest from nation states around Russia and Ukraine. They’re fortifying their defenses because this is not over yet. Cyberattack is an easy way to create economic chaos and we want to make sure that every company, every piece of critical infrastructure is well protected.

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