Palo Alto Networks record revenue and hike in Shares
Shares of Palo Alto Network, one of the leading cyber security companies best known for “next-generation firewall” experienced a hike of more than 10% on Tuesday after an hour’s trading session, when the company reported a 30% Y-O-Y revenue gain at $711.2 million for the quarter and adjusted earnings of $1.51per share. The company beats the expectation of various analysts who were assuming the company to report the revenue of $682 billion and $1.22 per share of adjusted earnings.
The further company announced a plan for $1billion buyback of shares.
The chief executive officer of Palo Alto Networks: Nikesh Arora stated “We remain focused on delivering to our customers the best security in the market”, with “Our recently introduced products and services, including Cortex XDR, Traps 6.0, PAN-OS 9.0, the DNS Security Service subscription, and our fastest ever Next-Generation Firewall, coupled with the proposed acquisition of Demisto, further enhance and expand our capabilities, making security simpler and more effective through the use of artificial intelligence, analytics, automation and orchestration”.
The company is supported by the number of factors such as increasing demand for cloud security, firewall protection, and various other security products.
Further for the third quarter company expects adjusted earnings of $1.23-$1.25 and revenue of $697-$707million representing 23%-25% growth, though analyst assumes adjusted earnings to be 41.25 per share and revenue $696.7 million.
Nikesh Arora CEO explains the acquisition Demisto is a key initiative in enhancing the company’s growth by assisting customers in managing and automating a proliferating number of security alerts. Demisto uses Machine Learning’s to establish workflows to resolve security issues, by helping customers resolve proliferating volume of security alerts.
The company is definitely seeing benefits from improved spending environment and increased share in the network security market”.