When Palo Alto Networks Inc. (NYSE: PANW) released its fiscal second-quarter earnings report after the markets closed on Tuesday, it posted $1.51 in earnings per share (EPS) and $711.2 million in revenue. The consensus estimates had called for $1.22 in EPS on revenue of $682.1 million. In the same period of last year, the cybersecurity firm said it had EPS of $1.05 and $542.4 million in revenue.
During the most recent quarter, billings grew 27% year over year to $852.5 million and deferred revenue increased 32% to $2.5 billion.
In terms of the business segment breakdown, Palo Alto Networks pulled in $271.6 million in product revenue and $439.6 million in subscription and service revenue, which were year-over-year increases of 32.6% and 29.0%, respectively.
Looking ahead to the fiscal third quarter, the firm expects to see EPS in the range of $1.23 to $1.25 and total revenue between $697 million and $707 million. Consensus estimates call for $1.24 in EPS and $696.95 million in revenue for the quarter.
The board of directors has approved a $1.0 billion share repurchase authorization that will expire at the end of December 2020.
Nikesh Arora, CEO of Palo Alto Networks, commented:
We remain focused on delivering to our customers the best security in the market. Our recently introduced products and services, including Cortex XDR, Traps 6.0, PAN-OS 9.0, the DNS Security Service subscription, and our fastest ever Next-Generation Firewall, coupled with the proposed acquisition of Demisto, further enhance and expand our capabilities, making security simpler and more effective through the use of artificial intelligence, analytics, automation and orchestration.
Shares of Palo Alto Networks closed Tuesday at $235.55, in a 52-week range of $160.08 to $239.50. The consensus price target is $249.01. Following the announcement, the stock was up about 11% at $261.00 in early trading indications Wednesday.