Palo Alto Networks Inc (NASDAQ:PANW) beats analysts’ expectations

Palo Alto Networks Inc (NASDAQ:PANW) stock rose 8.47% (As on May 20, 11:05:57 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22 and raised its guidance for the year across revenue, billings and earnings per share. Non-GAAP net income for the fiscal third quarter 2022 was $193.1 million, compared with non-GAAP net income of $139.5 million, for the fiscal third quarter 2021. Fiscal third quarter billings grew 40% year over year to $1.8 billion and Remaining performance obligation grew 40% year over year to $6.9 billion during the quarter.

PANW in the third quarter of FY 22 has reported the adjusted earnings per share of $1.79, beating the analysts’ estimates for the adjusted earnings per share of $1.68, according to analysts polled by Refinitiv. The company had reported the adjusted revenue growth of 29 percent to $1.39 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $1.36 billion.

For the fiscal fourth quarter 2022, the company expects total billings to be in the range of $2.32 billion to $2.35 billion, representing year over year growth of between 24% and 26%. The total revenue is expected to be in the range of $1.53 billion to $1.55 billion, representing year over year growth of between 25% and 27%, compared to the consensus of $1.53 billion and Diluted non-GAAP net income per share to be in the range of $2.26 to $2.29, using 106 million to 108 million shares outstanding compared to the consensus of $2.22.

For the fiscal year 2022, the company has raised guidance and expects the total billings to be in the range of $7.106 billion to $7.136 billion, representing year over year growth of between 30% and 31%, total revenue to be in the range of $5.481 billion to $5.501 billion, representing year over year growth of approximately 29%, diluted non-GAAP net income per share to be in the range of $7.43 to $7.46, using 106 million to 107 million shares and Adjusted free cash flow margin to be in the range of 32% to 33%. The consensus for total revenue & diluted non-GAAP net income per share are of $5.46 billion and $7.29, respectively.

During the quarter, the company teamed with Amazon Web Services Inc. in March to provide a next-generation firewall service for securing AWS deployment. Palo Alto Networks Cloud NGFW for AWS, exclusively available on AWS, delivers Palo Alto Networks’ security to organizations in a few clicks. Further, Palo Alto also launched Prisma Cloud Supply Chain Security in the quarter.

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