Palo Alto Networks, Inc. ($PANW) Earnings (Q4 FY22)

 Palo Alto Networks, Inc. ($PANW) Earnings and Opinion:


Palo Alto Networks is a company in the Technology sector and operates in the Software-Infrastructure industry. The company provides cybersecurity solutions worldwide. The company was incorporated in 2005 and is currently headquartered in Santa Clara, California. The company made its debut on the stock market in August of 2012. 

Palo Alto Networks Earnings Results:

  • Revenues of $1.55B beating expectations of $1.54B
  • Gross Profit of $1.136B missing expectations of $1.137B
  • Operating Income of $323M beating expectations of $314M
  • Adjusted EPS of $2.39 beating expectations of $2.28
  • Guidance all beat consensus estimates except for billings in Q1 of FY23 
Opinion:
Palo Alto Networks is soaring after reporting earnings after the market closed today. The earnings results were an overall success, and a 3-1 stock split was announced for the company. The stock split brings a lot more affordable option, giving way to a reasonable price stock for a solid company in the cybersecurity space. For earnings, the only miss was on Gross Profit and it was so slight that it is probably being ignored by investors. The Gross Margin is awesome, even though it missed and Operating Income is solid too. I love the EPS and the profitability of the company currently. The guidance has given the investors a lot of optimism as well, hoping to gear up for another successful year for Palo Alto Networks. As far as valuation goes, the company has a P/S ratio of 9.79 which is higher than the industry average of 7.94. The company is reaching profitability, and the growth rate looks to be steady at a solid rate. As far as debt and cash, the current ratio is at 0.74, which is a little low, but I think with the earnings coming in and expected to come in. The obligations should be overlooked and they will be able to fulfill them. In my opinion, Palo Alto Networks is a solid stock. The cybersecurity industry is growing like crazy and is becoming so much more of a vital part of the business. With war now being online, hackers in Russia and overseas are trying to steal information left and right from companies. With this lingering, it shows the importance of a business like Palo Alto to secure companies from getting hacked. The opportunity to buy may be right around the corner with the stock split coming up. I am definitely long Palo Alto and all other major cybersecurity companies.


*Information from Yahoo Finance, CMLVIZ, Consensus Gurus, and CSI Market.

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