Q4 2023 Earnings Report Reveals Positive Results for Palo Alto Networks (PANW)

Palo Alto Networks witnessed a significant surge of 9% in its shares during after-hours trading on Friday, following the release of its earnings report that surpassed analysts’ expectations.

Due to concerns from investors, who speculated that the company’s late Friday release indicated potential negative figures, the stock had experienced a decline of 16% in August prior to the report.

Here are the key highlights from the company’s performance in the quarter ended July 31:

• Earnings: Adjusted earnings per share of $1.44, surpassing the expected $1.28 per share as estimated by Refinitiv.
• Revenue: Reported revenue of $1.95 billion, slightly missing the expected $1.96 billion as projected by Refinitiv.

Comparing to the previous year, revenue in Palo Alto’s fiscal fourth quarter increased by 26% from $1.6 billion. Net income also rose to $227.7 million, or 74 cents per share, in comparison to $3.3 million, or a penny per share, in the previous year.

For the upcoming first quarter, Palo Alto forecasts revenue ranging from $1.82 billion to $1.85 billion. The company expects sales for the year to fall within the range of $8.15 billion to $8.2 billion. This estimation falls below analysts’ expectations of $1.93 billion for the fiscal first quarter and $8.38 billion for the full year, according to Refinitiv.

Palo Alto initially announced its earnings date on August 2. Typically, tech companies on the West Coast release their earnings no later than Thursday afternoon, allowing investors time to process the data and make informed trades before the weekend. Historically, companies with unfavorable results tend to disclose their numbers after the market closes on Friday.

Palo Alto Networks CEO Nikesh Arora addressed the timing of the release during the company’s earnings call, acknowledging that the unusual timing has generated interest among analysts over the past two weeks. He apologized for any inconvenience caused, explaining that their decision was influenced by a board meeting and an upcoming conference, both of which required the release of the numbers before the events.

“Sorry for the inconvenience of having to discuss this on a Friday, but it’s crucial for the thousands of people joining us next week to have access to this information,” Arora stated.

WATCH: Jim Cramer interviews Palo Alto Networks CEO Nikesh Arora