Palo Alto Networks Profit In Line, Revenue Beats; Stock Up

(RTTNews) - Palo Alto Networks Inc (PANW), the provider of network security platform, Tuesday reported a wider loss for the fourth quarter, hurt by expenses that offset a surge in revenue. Excluding items, adjusted earnings matched Wall Street estimates and revenue surpassed expectations.

The company's earnings guidance for the current quarter were in line with analysts' estimates, and its revenue expectations were buoyant.

Following the announcement, Palo Alto shares gained about 5 percent in after-hours trade on the New York Stock Exchange.

"We delivered a record finish to fiscal year 2014 with fourth quarter revenue growth driven by continued rapid adoption of our unique enterprise security platform," said Mark McLaughlin, chief executive officer of the company.

The Santa Clara, California-based company posted fourth-quarter net loss of $32 million or $0.41 per share, compared with a loss of $15.8 million or $0.22 per share last year.

Results for the quarter included stock-based compensation expense of $33 million and litigation charges of $10 million, among other items.

Excluding items, adjusted earnings for the quarter were $0.11 per share, compared with $0.07 per share a year ago.

On average, 2 analysts polled by Thomson Reuters expected earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter jumped 59 percent to $178.2 million from $112.4 million in the prior year. Twenty-four analysts had a consensus revenue estimate of $161.3 million for the quarter.

Operating expenses for the quarter were higher at $155 million, compared with $89 million last year.

The company said billings for the quarter surged 64 percent year-over-year to $233 million.

For the first quarter, Palo Alto projects adjusted earnings of about $0.12 per share and revenues the of $178 million to $182 million. Analysts expect earnings of $0.12 per share on revenues of $173.9 million.

Palo Alto stock closed Tuesday at $89.28, down $0.70 or 0.78%, on a volume of 2.3 million shares. In after hours, the stock gained $3.73 or 4.18% at $93.01.