Palo Alto Networks, Inc. (NYSE: PANW), an entity of Zacks Security industry, announced fiscal Q4 earnings of 1.28 per share, outperforming the Zacks Consensus Estimate of USD 1.17. The cybersecurity firm which specializes in advanced firewall protections was founded in 2005 by Nir Zuk, a former engineer from Check Point and NetScreen Technologies.
Palo Alto had an impressive quarter with product revenue rising 26% to USD 267.6 Million. While revenue from subscription and support rose by 31.6% to USD 390.5 Million. Moreover, shares have also grown 53.3% from the beginning of the year. However, it is important to note that the firm also experienced marginal GAAP losses as net income reported a USD 2.3 Million loss while GAAP earnings per share are down USD 0.02. Despite these figures, Palo Alto Networks is still currently trading at. 230.33 up 4.50% (NYSE: PANW).
Looking ahead, Palo Alto has informed investors that expected revenue will range between USD 625 Million to USD 635 Million, which should translate to 2019 Q1 earnings per share of USD 1.04 to USD 1.06. The CEO, Nikesh Arora, expressed his optimism during the fiscal year 2018 earnings conference call stating that “the security market is large and continues to grow. Security market size estimates are close to about USD 100 Billion in 2018 and expected to grow at a CAGR of about 9% over the next 5 years. Despite being the leader in cybersecurity, we're still a small percentage of the market and we have aspirations to be larger.”