Palo Alto Networks Inc. (PANW) closed the Thursday session at a rise of 2.27 percent to $287.52.
The provider of cybersecurity services on Monday released its results for the first quarter of fiscal year. In the reported quarter, company’s revenue remain growing at a double-digit pace, and that encouraged the company to boost its outlook up for the year.
Palo Alto’s revenue rose 23 percent year on year to $946 million in the quarter ended October 31, 2020. The net loss was $92.2 million or $0.97 per diluted share compare to the loss of $59.6 million, or $0.62 per share in the same quarter last year.
Services up gradations including that was made in a new generation firewall, have been the driver of dated Palo Alto’s revenue growth. As demonstrated by Palo Alto’s high positions in the Gartner and Zero Trust ratings, the company upgraded all its apps, which earned strong ratings from experts.
The acquisition of Expanse, Inc., which has a perfect platform for monitoring the Internet for cyber threat detection, is another positive factor for Palo Alto’s long-term growth. The deal is likely to be closed in the second quarter. Palo Alto’s balance sheet has been adversely impacted by the $800 million acquisition, but the company’s portfolio extends in the promising direction of securing enterprise IT at Internet access points. Expanse brought many significant clients, including the Pentagon, from the Fortune 500 list, as well as from US government organizations.
For fiscal year 2021, Palo Alto has improved its forecast. The firm expects $4.09 – $4.14 billion in revenues, which means 20-21 percent growth. The Santa Clara, California-headquartered company has been expecting diluted earnings per share in the range of $5.7 – $5.8.
Palo Alto Networks Inc. (PANW) has gained more than 14 percent over the past week while its performance since beginning of the year is 24.33 percent.