Cybersecurity firm Palo Alto Networks Inc. surged after projecting billings for the current quarter that beat Wall Street’s estimates, easing fears that a slowdown in demand may weigh on earnings.
The Santa Clara, California-based company sees billings in the fiscal first quarter ranging from $10.9 billion to $11 billion, beating analysts’ estimates of $10.8 billion. Still, the firm’s quarterly and annual revenue outlooks fell below analysts’ estimates.
Palo Alto’s outlook is a potential bright spot for the cybersecurity industry. Firms including Fortinet Inc. and Check Point Software Technologies Ltd. had been reporting earnings that pointed to a slowdown across the space amid a broader pullback in tech spending and a shaky economy.
Palo Alto Chief Executive Officer Nikesh Arora said in a statement that the company’s “strategy is resonating with a growing number of our customers, driving continued consolidation.” He also noted that the company was “pleased” with the reception for its artificial-intelligence-based security platform.
The stock was up 10% at $228.29 at 4:30 p.m. New York time.
In a departure from the company’s usual timings, the results came after the closing bell Friday, prompting speculation that the forecast might not be promising. The stock had fallen around 20% since that announcement, as “pure fear” spread through investors.
