- Raises cash flow and operating margin guidance
- On track to cruise beyond full year earnings estimates
- Stock surges nearly 5% in after-hours trading
Shares in global cybersecurity bellwether Palo Alto Networks (PANW:NASDAQ) surged nearly 5% in after-hours trading overnight on Wall Street following the company’s third quarter report which saw margins goals raised.
‘We are raising our cash flow margin and operating margin guidance for full year as we balance driving efficiency goals while investing for medium-term growth’, said chief finance officer Dipak Golechha.
For the fourth quarter of 2023, the company expects EPS (earnings per share) in the range of $1.26 to $1.30 compared to the consensus of $1.20. On revenue, the Santa Clara-head quartered company sees $1.937 billion to $1.967 billion compared to the consensus of $1.95 billion.
Total billings are anticipated in the range of $3.15 billion to $3.20 billion, which would represent year-on-year growth of 17% to 19%.
FULL YEAR SET TO SMASH EARNINGS FORECASTS
For the full year to end August 2023, the company anticipates EPS of $4.25 to $4.29, compared to the consensus of $4.02, and revenue of $6.88 billion to $6.91 billion, compared to the consensus of $6.89 billion. Total billings are expected in the range of $9.18 billion to $9.23 billion, representing year-on-year growth of 23% to 24%.
In Q3, Palo Alto reported EPS of $1.10 coming in better than the consensus estimate of $0.93. Revenue increased 24% year-on-year to $1.7 billion, compared to the consensus estimate of $1.72 billion.
Palo Alto stock is seen opening 4.7% higher when Wall Street reopens later today at $198.74, up about 40% year-to-date.
