We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Palo Alto (PANW) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Read MoreHide Full Article
Palo Alto Networks (PANW - Free Report) reported strong first-quarter fiscal 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate and improved year over year.
The company reported non-GAAP earnings of 83 cents per share, beating the Zacks Consensus Estimate of 68 cents. The bottom line improved 50.9% from the year-ago quarter’s non-GAAP earnings of 55 cents per share.
Palo Alto’s fiscal first-quarter revenues of $1.56 billion surpassed the Zacks Consensus Estimate of $1.55 billion. The top line grew 25% from the year-earlier reported figure.
The top line was aided by several deal wins and increased adoption of Palo Alto’s Next-Generation Security (“NGS”) platforms due to the hybrid work culture and the heightened need for stronger security.
Palo Alto Networks, Inc. Price, Consensus and EPS Surprise
The company’s strong quarterly performance reflects its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy.
Quarterly Details
Product revenues increased 12% year over year to $330 million and contributed to 21% of total revenues. The company’s subscription and support revenues, which accounted for 78.9% of total revenues, improved 29.6% to $1.23 billion.
Billings increased 27% to $1.75 billion. Deferred revenues at the end of the fiscal first quarter were $3.74 billion. Palo Alto’s remaining performance obligation climbed to $8.3 billion, reflecting a year-over-year increase of 38%.
Palo Alto’s NGS annualized recurring revenues were $2.11 billion in the reported quarter compared with $1.27 billion in the year-ago quarter and $1.89 billion in the previous quarter.
Non-GAAP gross profits increased 25.2% to $1.16 billion. However, non-GAAP gross margin contracted 10 basis points (bps) to 74.3%, primarily due to heightened costs associated with supply chain issues.
Non-GAAP operating income rose 44% to $322.4 million while non-GAAP operating margin expanded 260 bps to 20.6%.
Balance Sheet & Cash Flow
Palo Alto exited the fiscal first-quarter with cash, cash equivalents and short-term investments of $3.80 billion, up from $3.63 billion at the end of the previous quarter. As of Oct 31, 2022, the company had a long-term debt of $283 million.
PANW generated an operating cash flow of $1.24 billion and a non-GAAP adjusted free cash flow of $1.20 billion during the fiscal first quarter. Non-GAAP adjusted free cash flow margin came in at 76.6%.
Guidance
For fiscal 2023, Palo Alto anticipates revenues in the range of $6.85-$6.91 billion, suggesting growth of 25-26% from the fiscal 2022 level.
Total billings are estimated to be $8.95-$9.10 billion for fiscal 2023, indicating a year-over-year increase of 20-22%. The company projects its non-GAAP earnings to be in the $3.37-$3.44 per share band.
Non-GAAP adjusted free cash flow margin is expected in the range of 34.5-35.5% for fiscal 2023.
For the second quarter of fiscal 2023, Palo Alto projects revenues between $1.63 billion and $1.66 billion, suggesting year-over-year growth of 24-26%.
Total billings are anticipated between $1.94 billion and $1.99 billion, indicating an increase of 21-24% from the year-ago quarter. Non-GAAP earnings are projected to be 76-78 cents per share.
Zacks Rank & Other Key Picks
Palo Alto currently carries a Zacks Rank #2 (Buy). Shares of PANW have lost 9.7% in the past year.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 16 cents up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 11.8%. Shares of the company have moved down 1.9% in the past year.
The Zacks Consensus Estimate for Fabrinet's second-quarter fiscal 2023 earnings has been revised 16 cents northward to $1.89 per share over the past seven days. For fiscal 2023, earnings estimates have improved 7.6% to $7.48 per share in the past seven days.
FN’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 5.4%. Shares of the company have gained 10.7% in the past year.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved north by a penny to $1.18 per share in the past 60 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 61.6% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Palo Alto (PANW) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Palo Alto Networks (PANW - Free Report) reported strong first-quarter fiscal 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate and improved year over year.
The company reported non-GAAP earnings of 83 cents per share, beating the Zacks Consensus Estimate of 68 cents. The bottom line improved 50.9% from the year-ago quarter’s non-GAAP earnings of 55 cents per share.
Palo Alto’s fiscal first-quarter revenues of $1.56 billion surpassed the Zacks Consensus Estimate of $1.55 billion. The top line grew 25% from the year-earlier reported figure.
The top line was aided by several deal wins and increased adoption of Palo Alto’s Next-Generation Security (“NGS”) platforms due to the hybrid work culture and the heightened need for stronger security.
Palo Alto Networks, Inc. Price, Consensus and EPS Surprise
Palo Alto Networks, Inc. price-consensus-eps-surprise-chart | Palo Alto Networks, Inc. Quote
The company’s strong quarterly performance reflects its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy.
Quarterly Details
Product revenues increased 12% year over year to $330 million and contributed to 21% of total revenues. The company’s subscription and support revenues, which accounted for 78.9% of total revenues, improved 29.6% to $1.23 billion.
Billings increased 27% to $1.75 billion. Deferred revenues at the end of the fiscal first quarter were $3.74 billion. Palo Alto’s remaining performance obligation climbed to $8.3 billion, reflecting a year-over-year increase of 38%.
Palo Alto’s NGS annualized recurring revenues were $2.11 billion in the reported quarter compared with $1.27 billion in the year-ago quarter and $1.89 billion in the previous quarter.
Non-GAAP gross profits increased 25.2% to $1.16 billion. However, non-GAAP gross margin contracted 10 basis points (bps) to 74.3%, primarily due to heightened costs associated with supply chain issues.
Non-GAAP operating income rose 44% to $322.4 million while non-GAAP operating margin expanded 260 bps to 20.6%.
Balance Sheet & Cash Flow
Palo Alto exited the fiscal first-quarter with cash, cash equivalents and short-term investments of $3.80 billion, up from $3.63 billion at the end of the previous quarter. As of Oct 31, 2022, the company had a long-term debt of $283 million.
PANW generated an operating cash flow of $1.24 billion and a non-GAAP adjusted free cash flow of $1.20 billion during the fiscal first quarter. Non-GAAP adjusted free cash flow margin came in at 76.6%.
Guidance
For fiscal 2023, Palo Alto anticipates revenues in the range of $6.85-$6.91 billion, suggesting growth of 25-26% from the fiscal 2022 level.
Total billings are estimated to be $8.95-$9.10 billion for fiscal 2023, indicating a year-over-year increase of 20-22%. The company projects its non-GAAP earnings to be in the $3.37-$3.44 per share band.
Non-GAAP adjusted free cash flow margin is expected in the range of 34.5-35.5% for fiscal 2023.
For the second quarter of fiscal 2023, Palo Alto projects revenues between $1.63 billion and $1.66 billion, suggesting year-over-year growth of 24-26%.
Total billings are anticipated between $1.94 billion and $1.99 billion, indicating an increase of 21-24% from the year-ago quarter. Non-GAAP earnings are projected to be 76-78 cents per share.
Zacks Rank & Other Key Picks
Palo Alto currently carries a Zacks Rank #2 (Buy). Shares of PANW have lost 9.7% in the past year.
Some other top-ranked stocks from the broader Computer and Technology sector are Celestica (CLS - Free Report) , Fabrinet (FN - Free Report) and Zscaler (ZS - Free Report) . While Celestica flaunts a Zacks Rank #1 (Strong Buy), Fabrinet and Zscaler carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 16 cents up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 11.8%. Shares of the company have moved down 1.9% in the past year.
The Zacks Consensus Estimate for Fabrinet's second-quarter fiscal 2023 earnings has been revised 16 cents northward to $1.89 per share over the past seven days. For fiscal 2023, earnings estimates have improved 7.6% to $7.48 per share in the past seven days.
FN’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 5.4%. Shares of the company have gained 10.7% in the past year.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 90 days. For fiscal 2023, earnings estimates have moved north by a penny to $1.18 per share in the past 60 days.
ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 61.6% in the past year.