Palo Alto Networks (PANW) on Thursday reported October-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 Palo Alto earnings for its fiscal first quarter after the market close.
Palo Alto said profit rose 50% 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, the company projected Palo Alto 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.
Palo Alto stock rose 2.8% to near 161 in extended trading on the stock market today. In Thursday’s regular session, shares dipped 1.6%.
PANW Stock: Mediocre Relative Strength Rating
In addition, PANW stock has declined 14% in 2022. 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.
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