How Palo Alto Crushed Q4 Earnings
Shares of Palo Alto Networks climbed handily after it reported better-than-expected fiscal fourth-quarter earnings results.
When Palo Alto Networks Inc. (NYSE: PANW) reported its fiscal fourth-quarter earnings results after the markets closed on Thursday, the firm said that it had $0.92 in earnings per share (EPS) and $509.1 million in revenue. Consensus estimates had called for $0.79 in EPS and revenue of $486.5 million.
During the quarter, the company said it added 3,000 new customers, and it reported record revenues, an increase of 27% from last year. It also delivered record deferred revenue and billings, while generating cash flow from operations of $240 million and free cash flow of $190 million.
In terms of the guidance for the fiscal first quarter, management is calling for EPS in the range of $0.67 to $0.69 and revenues between $482 million and $492 million. The consensus estimates are EPS of $0.68 and $489.76 million in revenue for the current quarter.
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On the books, Palo Alto Networks cash, cash equivalents and short-term investments totaled $1.38 billion, up from $1.29 billion in the same period from last year.
Mark McLaughlin, CEO of Palo Alto Networks, commented:
We are pleased to have ended fiscal 2017 with a record fourth quarter, including market-leading revenue growth and the highest number of new customer additions recorded in a single quarter by the company. For the fiscal year, revenue was $1.8 billion, up 28 percent year over year; our customer base grew to more than 42,500; and we delivered the largest product and features launch in our history. Also, Steffan Tomlinson, our chief financial officer, has informed me of his intent to retire from his position. I would like to thank Steffan for his contributions to Palo Alto Networks and his leadership role in guiding the company through a period of tremendous growth and market share gains. We are initiating a search for his replacement, and Steffan will remain in his current position until the search is completed.
Shares of Palo Alto Networks closed Thursday at $132.69, with a consensus analyst price target of $150.58 and a 52-week range of $107.31 to $165.69. They were up about 8% at $143.74 in early trading indications Friday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
