Palo Alto Networks (PANW) -) shares surged higher Monday after the cybersecurity group posted stronger-than-expected fiscal-fourth-quarter earnings while boosting its full-year sales forecast.
In a rare after-market release Friday, Palo Alto said adjusted earnings for the three months ended in July rose 80% from a year earlier to $1.44 a share, topping the Wall Street consensus forecast of $1.28 a share.
Group revenue was up 26% at $1.95 billion, matching analysts' estimates. The group forecast a fiscal 2024 billings tally of between $10.9 billion and $11 billion, with revenues ranging $8.15 billion to $8.2 billion.
Cybersecurity market 'robust': Palo Alto Networks CEO
"We will continue to see the pace of technology spend go sort of up or forward," Chief Executive Nikesh Arora told investors on a conference call.
"Similarly, we're going to see that cybersecurity is going to get more than its fair share of growth," he added. "So, from an opportunity perspective, from what's going on in the market, we believe the cybersecurity market is robust and will continue to be so in the next two to five years."
Palo Alto Networks shares were marked 15.9% higher in early afternoon trading Monday to change hands at $243.05 each, a move that would extend the stock's year-to-date gain to around 74%.
Palo Alto apologized for the late Friday release time, a rarity on Wall Street, but said the timing was necessary to give "ample time to analysts to have one-on-one calls with us over the weekend" and ahead of a companywide sales conference that was scheduled for Sunday.
"So, I mean, honestly, like, sorry to drag you out on the Friday afternoon, but I think it's important for a few thousand people next week that we shared all these results with them," Arora said. "We just got caught in the trap of trying to get a board meeting done and do that on Sunday. So, here we are on Friday.
"But-- if it gives you any comfort -- [Chief Financial Officer Dipak Golecha] and me and the team are going to be working all Saturday and Sunday as well," he joked.
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