Palo Alto Networks (PANW) Tops Q3 EPS by 10c, Revenues Beat; Offers FY21 EPS/Revenues Guidance Above Consensus, Affirms 4Q EPS/Revenue Outlook

Palo Alto Networks (NYSE: PANW) reported Q3 EPS of $1.38, $0.10 better than the analyst estimate of $1.28. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.06 billion.

"The work-from-home shift earlier in the year and recent cybersecurity issues have increased the focus on security. Coupled with good execution, this has driven great strength across our business, with Q3 billings growth accelerating to 27% year over year. In particular, we saw a number of customers make large commitments to Palo Alto Networks across our three major platforms," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "We are pleased to be raising our guidance for fiscal year 2021 as we see these trends continuing into our fiscal fourth quarter, bolstering our confidence in our pipeline."

GUIDANCE:

Palo Alto Networks sees Q4 2021 EPS of $1.42-$1.44, versus the consensus of $1.42. Palo Alto Networks sees Q4 2021 revenue of $1.695-1.715 billion, versus the consensus of $1.16 billion.

Palo Alto Networks sees FY2021 EPS of $5.97-$5.99, versus the consensus of $5.88. Palo Alto Networks sees FY2021 revenue of $5.28-5.3 billion, versus the consensus of $4.18 billion.

For the fiscal fourth quarter 2021, the company expects:

• Total billings in the range of $1.695 billion to $1.715 billion, representing year-over-year growth of between 22% and 23%.
• Total revenue in the range of $1.165 billion to $1.175 billion, representing year-over-year growth of between 23% and 24%.
• Diluted non-GAAP net income per share in the range of $1.42 to $1.44, using 101 million to 103 million shares.

For the fiscal year 2021, the company is raising guidance and expects:

• Total billings in the range of $5.28 billion to $5.30 billion, representing year-over-year growth of 23%.
• Total revenue in the range of $4.20 billion to $4.21 billion, representing year-over-year growth between 23% and 24%.
• Diluted non-GAAP net income per share in the range of $5.97 to $5.99, using 99 million to 101 million shares.
• Adjusted free cash flow margin of approximately 30%.

For earnings history and earnings-related data on Palo Alto Networks (PANW) click here.

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