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.
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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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