How Palo Alto Networks Closed Out a Strong Q4

By Chris Lange Updated Jan 11, 6:17PM EST · Published Sep 7, 8:25AM EDT

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How Palo Alto Networks Closed Out a Strong Q4 — © Thinkstock

When Palo Alto Networks Inc. (NYSE: PANW) reported its fiscal fourth-quarter financial results after the markets closed on Thursday, the company said that it had $1.28 in earnings per share (EPS) and $658.1 million in revenue. That compared with consensus estimates of $1.17 in EPS on revenue of $633.05 million, as well as the $0.92 per share and $509.1 million posted in the same period of last year.

During the most recent quarter, product revenue totaled $267.6 million, an increase of 26.0% year over year, while subscription and support revenue totaled $390.5 million, an increase of 31.6%. Billings totaled $868.1 million in the quarter, an increase of 29.4% from $670.8 million last year.

Looking ahead to the fiscal first quarter, the company expects to see EPS in the range of $1.04 to $1.06 and revenue between $625 million and $635 million. Consensus estimates call for $1.04 in EPS and $619.35 million in revenue.

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Nikesh Arora, CEO of Palo Alto Networks, commented:

We had a strong fourth quarter, continuing our global momentum at a growth rate that outpaces our peers and the cybersecurity market. Enterprises are in the early stages of the cloud revolution. This poses new security challenges for businesses worldwide. We are becoming the strategic partner of choice to help businesses embrace the cloud and protect their digital information by reducing complexity and providing the same level of consistency, integration, and automation that we brought to network security.

Shares of Palo Alto Networks closed Thursday at $220.37, with a consensus analyst price target of $229.93 and a 52-week trading range of $135.85 to $232.88. Following the announcement, the stock was up about 6% in early trading indications Friday.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.