Palo Alto Networks Inc. shares rose in the extended session Thursday after the cybersecurity company reported results that topped Wall Street estimates and hiked its outlook for the year.
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The company reported a fiscal third-quarter loss of $145.1 million, or $1.50 a share, compared with a loss of $74.8 million, or 77 cents a share, in the year-ago period. Adjusted earnings, which exclude share-based compensation charges and other items, were $1.38 a share, compared with $1.17 in the year-ago period.
Revenue rose to $1.07 billion from $869.4 million in the year-ago quarter. Billings, which reflects future business under contract, rose to $1.29 billion, compared with $1.02 billion a year ago,
Analysts surveyed by FactSet had forecast earnings of $1.29 a share on revenue of $1.06 billion and billings of $1.23 billion.
“The work-from-home shift earlier in the year and recent cybersecurity issues have increased the focus on security,” said Nikesh Arora, Palo Alto Networks chairman and chief executive, in a statement. “Coupled with good execution, this has driven great strength across our business, with Q3 billings growth accelerating to 27% year over year.”
Palo Alto Networks makes security software, a hot segment in the wake of high-profile hacks like the SolarWinds intrusion and the Colonial pipeline ransomware attack.
Palo Alto Networks expects adjusted fiscal-fourth quarter earnings of $1.42 to $1.44 a share on revenue of $1.17 billion to $1.18 billion, while analysts had forecast $1.41 a share on revenue of $1.16 billion. The company also expects billings of $1.7 billion to $1.72 billion, while analysts had forecast $1.62 billion.
For the year, Palo Alto Networks expects adjusted earnings of $5.97 to $5.99 a share on revenue of $5.28 billion to $5.3 billion, while analysts expect $5.86 a share on revenue of $4.18 billion. The company also sees billings of $5.28 billion to $5.30 billion, while analysts forecast $5.16 billion.
Palo Alto Networks shares are up 46% for the past 12 months. In comparison, the ETFMG Prime Cyber Security ETF HACK,
