Daily Stock Market News

PANW Stock: Palo Alto Earnings Beat Estimates Amid Cider Security Acquisition

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


The cybersecurity firm reported earnings for its fiscal first quarter after the market close.

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

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

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

PANW Stock Rises After Report

“Next-generation security annual recurring revenue grew 67% to $2.1 billion (topping estimates of $1.9 billion) while product revenue of $330 million grew 12% vs. consensus at 9%,” RBC Capital analyst Matthew Hedberg said in a report.

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

PANW stock has declined 15.6% in 2022 through Thursday’s close. It holds a Relative Strength Rating of 64 out of a best-possible 99, according to IBD Stock Checkup.

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

Firewall appliances protect computer networks by blocking online intrusions and monitoring web-based apps.

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


Smartest Guys In The Room? Big Wall Street Firms Hold Bitcoin Bag

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Learn How To Time The Market With IBD’s ETF Market Strategy

IBD Live: A New Tool For Daily Stock Market Analysis

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

Read More: PANW Stock: Palo Alto Earnings Beat Estimates Amid Cider Security Acquisition

You might also like
A note to our visitors

This website has updated its privacy policy in compliance with changes to European Union data protection law, for all members globally. We’ve also updated our Privacy Policy to give you more information about your rights and responsibilities with respect to your privacy and personal information. Please read this to review the updates about which cookies we use and what information we collect on our site. By continuing to use this site, you are agreeing to our updated privacy policy.