Palo Alto Networks (PANW) Earnings Report for the Fourth Quarter of 2023

  • Palo Alto reported earnings that beat analyst estimates even as revenue was lower than expected.
  • The stock rose in extended trading after an extended sell-off.
  • Investors have been concerned about the potentially problematic numbers since the company chose to report earnings after the market closed on Friday.

Arora Nikesh, CEO and Chairman of Palo Alto Networks at the World Economic Forum in Davos, Switzerland on May 23, 2022.

Adam Gallica | CNBC

Shares of Palo Alto Networks jumped as much as 9% in extended trading Friday after the security software vendor reported earnings that beat analyst estimates.

The stock had fallen 16% in August before the report was released as investors worried that the company’s decision to release results late on Friday suggested the release could include troubling numbers.

Here’s what the company did for the quarter ending July 31:

  • Earnings: $1.44 a share, adjusted, versus $1.28 a share, adjusted, as expected by Refinitiv.
  • he won: $1.95 billion, compared to $1.96 billion as expected by Refinitiv.

Revenue in the fiscal fourth quarter increased 26% from $1.6 billion a year earlier, Palo Alto He said. Net income rose to $227.7 million, or 74 cents per share, from $3.3 million, or one penny per share, a year ago.

For the first quarter, Palo Alto expects revenue of $1.82 billion to $1.85 billion, and sales for the year are expected to be in the range of $8.15 billion to $8.2 billion. That’s less than analysts’ expectations of $1.93 billion for the first quarter of the fiscal year and $8.38 billion for the full year, according to Refinitiv.

announced Palo Alto Earnings date August 2nd. West Coast tech companies usually report earnings no later than the week on Thursday afternoon, giving investors a chance to crunch the numbers and trade stocks based on those results before the weekend ends. Historically, companies with bad news often bury numbers after trading closes on Friday.

Niksh Arora, CEO of Palo Alto Networks, spoke about the timing of the release on the company’s earnings call and said it was “set up for some interesting reading” in analyst reports over the past two weeks.

“We apologize to the people who caused the inconvenience,” Arora said, adding that the company was stuck between several events. Palo Alto had a board meeting this week and had a conference call starting Sunday, and wanted to get the numbers in before all those people got together.

“Sorry to drag you out on Friday, but I think it’s important for the few thousand people next week that we share all of these results with them,” Arora said.

He watchesNikesh Arora, CEO of Palo Alto Networks, is interviewed by Jim Cramer

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