Published on May 4th, 2017 | by Daily Station Team
Palo Alto Networks Posts Higher-Than-Expected Q2 Results
Palo Alto Networks (PANW) recently reported their financial results for the second quarter of the 2017 fiscal year. The company reported figures that were better than the market and analysts expected.
Thus, Palo Alto Networks saw their overall revenues rise by 54 percent over the same quarter of the previous year, reaching a record figure of $217.7 million. This was higher than the $204 million analysts were expecting and also higher than the $141.1 million the company achieved in the second quarter of the 2017 fiscal year.
Net income on a non-GAAP basis came in at $16.9 million, equating to earnings per diluted share of $0.19. This was also higher than analysts had estimated, who were expecting EPS of $0.17. During the same quarter of the previous year, the company’s net income on a non-GAAP basis came in at $7.8 million, equating to earnings per diluted share of $0.1.
Palo Alto Networks posted a net loss on a GAAP basis for Q2 of $43 million, which equated to a loss per diluted share of $0.53. This is lower than the net losses the company posted in the same quarter of the previous year, when losses hit the $39.9 million mark, which worked out to losses per diluted share of $0.55 at the time.
At the start of Q2, the company stated they had $653.81 million in cash and cash equivalents. At the end of the quarter, Palo Alto Networks had $342.98 million in cash and cash equivalents.
Mark McLaughlin, the Chief Executive Officer of Palo Alto Networks, stated that all the company’s metrics had delivered highly solid results in the second quarter. He stated the figures were the result of continued sold demand for their next-gen enterprise security solution that is able to detect malicious activity and also offers automated and integrated capabilities to prevent such activity. Taking into account the increase in the severity and degree of today’s cyber attacks that are more and more sophisticated, McLaughlin stated than an increased number of organizations are turning to Palo Alto Networks to offer them solutions for some of their most complicated security issues.
For the 2017 fiscal year, Palo Alto Networks is expecting to generate revenues between $219 million and $223 million, which would represent a growth between 45 percent and 48 percent on a year over year basis. It would also be higher than analysts’ estimates, which are for revenues of $214.17 million.
Non-GAAP earnings per diluted share for the third quarter of the 2017 fiscal year are expected to come in between $0.19 and $0.2 based on between 87 million and 89 million shares. Analysts are expecting EPS of $0.19 for Q3.
Palo Alto Networks saw their shares trade at $145.75 during after-hours trading, indicating a fall of 0.16 percent. The company has been trading between $57.47 and $149.35 over the past 52 weeks. Palo Alto Networks has a market cap of $12.25 billion.