Palo Alto Networks  (PANW) – Get Free Report shares surged higher in pre-market trading after the cybersecurity group posted stronger-than-expected fourth quarter earnings late Friday while boosting its full-year sales forecast. 

In a rate after-market release Friday, Palo Alto said adjusted earnings for the three months ending in July, the group’s fiscal fourth quarter, rose 80% from last year to $1.44 per share, firmly topping the Street consensus forecast of $1.28 per share.

Group revenues were up 26% at $1.953 billion, matching analysts’ estimates, with the group forecasting a 2024 billings tally of between $10.9 billion and $11 billion, with revenues in the range of $8.15 billion to $8.2 billion.

“We will continue to see the pace of technology spend go sort of up or forward,” CEO Nikesh Arora told investors on a conference call. 

“Similarly, we’re going to see that cybersecurity is going to get more than its fair share of growth,” he added. “So, from an opportunity perspective, from what’s going on in the market, we believe the cybersecurity market is robust and will continue to be so in the next two to five years.”

Palo Alto Networks shares were marked 12.5% higher in pre-market trading to indicate an opening bell price of $235.97 each.

Palo Alto apologized for the late Friday release time, a rarity on Wall Street, but said the timing was necessary in order to give “ample time to analysts to have one-on-one calls with us over the weekend” and ahead of a company-wide sales conference that was scheduled for Sunday.

“So, I mean, honestly, like, sorry to drag you out on the Friday afternoon, but I think it’s important for a few thousand people next week that we shared all these results with them,” Arora said. “We just got caught in the trap of trying to get a board meeting done and do that on Sunday. So, here we are on Friday. 

“But– if it gives you any comfort —  (CFO Dipak Golecha) and me and the team are going to be working all Saturday and Sunday as well,” he joked.

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