Palo Alto Networks lifts earnings guidance as it pursues profitable growth

Palo Alto Networks shares moved 7% higher successful extended trading connected Tuesday aft the information bundle shaper issued fiscal second-quarter net that topped Wall Street projections.

Here's however the institution did:

• Earnings: $1.05 per share, adjusted, vs. 78 cents per stock arsenic expected by analysts, according to Refinitiv.
• Revenue: $1.66 billion, vs. 1.65 cardinal arsenic expected by analysts, according to Refinitiv.

The company's gross roseate 26% twelvemonth implicit twelvemonth successful the quarter, which ended Jan. 31, according to a statement. Net income came successful astatine $84.2 million, oregon 25 cents per share, compared with a nonaccomplishment of $93.5 cardinal successful the year-ago quarter.

"Our absorption connected driving profitable maturation is reflected successful our Q2 results," said Dipak Golechha, the company's concern chief, was quoted arsenic saying successful the statement. "As a result, we are raising our currency travel borderline and operating profitability targets arsenic we stay focused connected driving ratio successful our business."

Palo Alto Networks has present posted 3 consecutive quarters of profitability pursuing a decennary of being successful the red.

It called for fiscal third-quarter adjusted net of 90 cents to 94 cents per stock connected $1.695 billion to $1.725 cardinal successful revenue. Analysts surveyed by Refinitiv had expected 78 cents successful adjusted net per stock connected $1.74 cardinal successful revenue.

Management pushed up its net guidance for the 2023 fiscal year. It called for $3.97 to $4.03 successful adjusted per share. In November guidance was $3.37 to $3.44 successful adjusted net per stock Analysts polled by Refinitiv had been looking for $3.42 successful adjusted net per stock connected $6.89 cardinal successful revenue.

During the 4th the institution acquired startup Cider Security, which focused connected bundle proviso concatenation and exertion information for astir $195 million. It's the latest woody successful a bid that person helped Palo Alto Networks support increasing its apical enactment nether CEO Nikesh Arora.

Notwithstanding the after-hours move, truthful acold Palo Alto Networks shares are up 20% truthful acold this year, outperforming the S&P 500 index, which has risen 4% implicit the aforesaid period.

Executives volition sermon the results with analysts connected a league telephone starting astatine 4:30 p.m. ET.

This is breaking news. Please cheque backmost for updates.

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