Palo Alto stocks jump on higher full-year forecast

Shares of Palo Alto Networks Inc. edged up after the bell on Friday after the firm lifted its full-year outlook.

The American cybersecurity business soared 11.03% or 48.13 points to $484.50 per share. Eventually, the company reversed a downturn of 0.51% or 2.23 points to $436.37 per share in the earlier session. This surge added $4.59 billion to the company’s market valuation.

Palo Alto earnings

Accordingly, Palo Alto now expects adjusted earnings of $7.43 to $7.46 per share in the current fiscal year. Executives also anticipated revenue in the range of $5.48 billion to $5.50 billion.

The outlook is well above the analysts’ expectation of $7.29 EPS on $5.46 billion in revenue. Then, the tech company also explained that the latest guidance considered wage inflation amid the job contraction in the industry.

Moreover, CEO Nikesh Arora cited that the firm projects robust top-line growth in the third quarter. The bullish outlook reflects the firm’s consistent execution in capitalizing on the solid cybersecurity demand trends.

Subsequently, Palo Alto Networks has observed Russian cyberattacks since the geopolitical crisis broke out during the quarter. Then, the firm emphasized the greater interest in protection from corporations and government agencies across Europe.

Palo Alto delivers upbeat Q2 top and bottom lines

Furthermore, Palo Alto Networks also delivered an outstanding performance in the second quarter.

Its revenue surged 29% year-over-year to $1.39 billion, surpassing the market consensus of $1.36 billion. The latest result also represented a 30.00% increase from a month earlier. Consequently, the business posted earnings of $1.79 per share, well above the $1.68 estimated.

At the same time, Palo Alto announced a next-generation firewall tool in the quarter. The product is available exclusively through Amazon’s public cloud.

In addition, the company also unveiled a device to help companies detect vulnerabilities in software supply chains. This feature addresses issues stemming from malicious updates to SolarWinds’ Orion software.