Palo Alto Networks released the first public quarterly report on Monday and beat the analysts’ prediction on revenues. This was the company’s fourth fiscal quarter report and the first one after going public in June this summer.
The company surpassed expert opinions on sales, revenues and profit per share. Financial analysts at Wall Street had a mutual consensus polled by Thomson Reuters.
The revenues jumped 88 percent from the year-earlier quarter to $75.6 Million, whereas, the experts had estimated the company to report revenues of $71.3 Million. The company also reported profit of 3 cents per share. The consensus was a break even on that one. The same quarter last year Palo Atlo Networks reported a 9-cent loss per share.
In the outlook for the ongoing quarter the company seems optimistic as well. It expects to report revenues from $80 to $84 Million and profit of 3 cents per share. That is against the 3-cent EPS and $80.8 Million revenue that the experts calculate for the first fiscal quarter ending October 30.
However, despite the upbeat report, PANW shares were down 11 percent, mainly because word on the street was that the company will report even more promising figures. Moreover, this is first time in six quarter that the revenue growth has not gone in triple digits.
But it’s tough to continue growing a business this size at triple-digit rates,” Jonathan Ho, an analyst with William Blair & Co said in a statement. “I thought it was a solid report.
Palo Alto Networks makes network security products, mainly firewalls, that product big companies’ computing assets from outside threats like malware and hacking. The company promotes itself as the next-generation firewall makers.
“We have pioneered the next generation of network security by completely reinventing the firewall,” Palo Alto Networks CEO Mark McLaughlin said in the company’s earnings release.
Palo Alto Networks went public on June 20 at the face value of $42 and quickly hiked to $53 to close the day. It was trading at $71.75 a pop on Monday.