Palo Alto Networks Inc. (PANW), a cyber-security solutions provider, has seen an increase of 10.40% in its share price within after-hours. As a result of that, currently, PANW stock stands at $411.30.
PANW Q4 financial result
That surge within PANW stock has come after the company reported handsome quarterly results for the fourth quarter of the fiscal year 2021, which ended 31st July. The total revenue for the quarter grew 28% year over year to $1.2 billion, as compared to the $950.4 million during the equivalent period of 2020. The billing during the quarter grew 34% year on year to $1.9 billion. The billing during the fiscal year 2021 grew 27% to $5.5 billion. The earnings for the quarter stood at $1.60 per share, while during the equivalent period of the previous year, the earnings stood at $1.48 a share. For the first quarter of fiscal 2022, the company expects to generate revenue in a range of $1.19 billion to $1.21 billion, which could represent year-over-year growth between 26% and 28%. The total billing for the quarter is expected to stand between $1.29 billion to $1.31 billion. The company expects earnings per share for the next quarter to stand between $1.55 and $1.58. Nikesh Arora, chairman, and CEO of Palo Alto Networks said on the release of financial results that strong Q4 performance was the culmination company’s innovative strategy execution throughout the year.
FedRAMP moderate authorization
In early August, PANW announced the achievement of Federal Risk and Authorization Management Program (FedRAMP) moderate authorization by Prisma® Access. That authorization meant that Prisma Access could help US state agencies to secure their distributed workforce. With pandemic transmuting the ways of communication around the globe, the governments, and particularly the US, is opting to provide secure connectivity to remote workers. Prisma access would provide state authorities with secure networking options to serve the purpose of workforce protection. Dana Barnes, senior vice president of Public Sector for Palo Alto Networks said on the occasion that Palo Alto Networks is providing leading solutions to protect the U.S. government and its federal agencies from all security threats.
Formation of alliance
In late July, PANW formed a strategic alliance with Deloitte, a security consulting service provider. The alliance aimed to bring together Deloitte and Palo to deliver broad solutions to aid consumers to simplify complex security infrastructure, and on the other hand, increasing speed and agility. That would enable both of them to protect their digital initiatives. Deloitte and Palo jointly developed the solutions that Deloitte would have to deliver to its mutual customers, via the zero trust services.
What lies ahead?
According to analysts, PANW is expected to generate revenue of $4.98 billion in the fiscal year 2022, while it is expected to grow some 18.40% during the next year. These indicators reveal that the financial performance of PANW is expected to show a boom in near future. For PANW stock, the EPS for the next 5 years is expected to grow by 22.14%. These statistics should be a glimmer of hope for potential investors to invest in PANW stock.
