Palo Alto Networks Surges After Billings Outlook Beats Estimates
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2023-08-19 04:51
Cybersecurity firm Palo Alto Networks Inc. surged after projecting billings for the current quarter that beat Wall Street’s

Cybersecurity firm Palo Alto Networks Inc. surged after projecting billings for the current quarter that beat Wall Street’s estimates, easing fears that a slowdown in demand may weigh on earnings.

The Santa Clara, California-based company sees billings in the fiscal first quarter ranging from $10.9 billion to $11 billion, beating analysts’ estimates of $10.8 billion. Still, the firm’s quarterly and annual revenue outlooks fell below analysts’ estimates.

Palo Alto’s outlook is a potential bright spot for the cybersecurity industry. Firms including Fortinet Inc. and Check Point Software Technologies Ltd. had been reporting earnings that pointed to a slowdown across the space amid a broader pullback in tech spending and a shaky economy.

Palo Alto Chief Executive Officer Nikesh Arora said in a statement that the company’s “strategy is resonating with a growing number of our customers, driving continued consolidation.” He also noted that the company was “pleased” with the reception for its artificial-intelligence-based security platform.

The stock was up 10% at $228.29 at 4:30 p.m. New York time.

In a departure from the company’s usual timings, the results came after the closing bell Friday, prompting speculation that the forecast might not be promising. The stock had fallen around 20% since that announcement, as “pure fear” spread through investors.

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