Palo Alto Networks Inc. shares rallied in the extended session Tuesday after the cybersecurity company reported another beat-and-raise quarter amid what is considered to be a tough time for enterprise software vendors.
Palo Alto Networks
shares gained more than 5% after hours, following a 1.4% decline in the regular session to close at $166.89.
The company reported fiscal second-quarter net income of $84.2 million, or 25 cents a share, versus a loss of $93.5 million, or 32 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.05 a share, compared with 58 cents a share in the year-ago period.
Revenue rose to $1.66 billion from $1.32 billion in the year-ago quarter, while billing came in at $2.02 billion.
Analysts surveyed by FactSet had forecast 78 cents a share on revenue of $1.65 billion and billings of $1.97 billion.
“We continue to see our teams execute well in the midst of macroeconomic challenges, helping customers consolidate their security architectures,” said Nikesh Arora, Palo Alto Networks chairman and chief executive, in a statement.
Palo Alto Networks forecast third-quarter adjusted earnings of 90 cents to 94 cents a share on revenue of $1.7 billion to $1.73 billion and billings of $2.2 billion to $2.25 billion for the third quarter, and $3.97 to $4.03 a share on revenue of $6.85 billion to $6.91 billion and billings of $9.1 billion to $9.2 billion for the year.
Analysts had estimated 79 cents a share on revenue of $1.74 billion and billings of $2.23 billion for the third quarter, and $3.42 a share on revenue of $6.89 billion and billings of $9.06 billion for the year.
In mid-November, Palo Alto Networks was running as one of 2022’s best software stocks after another beat-and-raise quarter.