Palo Alto Networks Cruises By in Fiscal Q1

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When Palo Alto Networks Inc. (NYSE: PANW) reported its most recent quarterly results after the markets closed on Thursday, the cybersecurity firm posted $1.17 in earnings per share (EPS) and $656 million in revenue. That compared with consensus estimates of $1.05 in EPS and $631.89 million in revenue, as well as the $0.74 per share and $505.5 million posted in the same period of last year.

Product revenues increased 30.1% year over year to $240.5 million and Subscription and Support revenues increased 31% to $415.5 million.

Looking ahead to the fiscal second quarter, the company expects to see EPS in the range of $1.20 to $1.22 and revenue between $675 to million $685 million. Consensus estimates call for $1.20 in EPS and $668.73 million in revenue for the quarter.

On the books, Palo Alto Networks cash, cash equivalents and short-term investments totaled $3.20 billion at the end of the quarter, down from $3.40 billion at the end of the previous fiscal year.

Nikesh Arora, CEO of Palo Alto Networks, commented:

We had an excellent start to the fiscal year that highlights the continued strength of our platform. Our approach of providing best-in-class security products, combined with automation and integration to remove complexity, continues to resonate with customers. The completion of our RedLock acquisition during the quarter marks another important step forward in our cloud security strategy. We expect to deliver an integrated offering early next year that combines RedLock’s technologies with our existing cloud security products to help our customers secure their mobile workforce, protect the public cloud and stop advanced threats.

Shares of Palo Alto Networks were last seen up about 3% at $181.06 on Friday, in a 52-week range of $140.12 to $239.50. The consensus analyst price target is $248.71.