David Paul Morris / Bloomberg / Getty Photographs
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Palo Alto Networks reported higher income and revenue than anticipated for the primary quarter of fiscal 2025.
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The cybersecurity firm lifted its projections for full-year income and adjusted earnings per share (EPS).
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Palo Alto Networks additionally mentioned it is going to endure a 2-for-1 inventory cut up subsequent month.
Palo Alto Networks (PANW) posted better-than-expected fiscal 2025 first-quarter outcomes and introduced a 2-for-1 inventory cut up after the bell Wednesday.
The cybersecurity firm reported $2.14 billion in income for the quarter, up from $1.88 billion a yr in the past and simply above the $2.12 billion consensus estimate of analysts compiled by Seen Alpha. Revenue of $350.7 million jumped greater than 80% and simply topped the anticipated $272.1 million.
Chief Govt Officer (CEO) Nikesh Arora mentioned the corporate notes that its prospects are realizing its “platformization” technique of consolidating and bundling providers to spice up gross sales is “the sport changer that can remedy safety and allow higher AI outcomes.”
Wedbush analysts, whereas sustaining an “outperform” ranking and $400 value goal, mentioned they imagine the corporate’s “efforts on platformization are simply starting to hit its stride because it generates a extra secure pipeline of platformization offers with cloud penetration nonetheless appearing as a significant driver going ahead.”
Palo Alto Networks additionally introduced a inventory cut up that can make it the newest firm to take action this yr, becoming a member of the likes of Walmart (WMT), Chipotle Mexican Grill (CMG), and Nvidia (NVDA). Firms carry out inventory splits for quite a lot of causes, together with making their share value extra accessible to a wider vary of buyers and rising buying and selling exercise on their inventory.
Palo Alto Networks quickly will double its current variety of shares with a 2-for-1 cut up, which means shareholders of document as of Dec. 12 will obtain a further share for each they personal after the market closes Dec. 13. The brand new variety of shares and halved value will take impact Dec. 16.
The corporate additionally lifted its full-year outlook for fiscal 2025, with income anticipated between $9.12 billion to $9.17 billion, up from $9.10 billion to $9.15 billion beforehand. Adjusted earnings per share (EPS) are seen between $6.26 to $6.39, up from $6.18 to $6.31.
Palo Alto shares not too long ago have been up 1.4% at $398.46 Thursday, roughly 35% above the place they began the yr.