Palo Alto Networks posts upbeat third-quarter results

Palo Alto Networks (PANW) posted a narrower loss in the third quarter helped by a rise in other income and a benefit from income taxes. The security software maker’s stock rose 2.06% in the premarket session as adjusted earnings and revenue came in ahead of Street’s expectations.

Separately, Palo Alto appointed Nikesh Arora as the chief executive officer and chairman, and Mark McLaughlin as the vice chairman effective June 6, 2018.

The company’s loss narrowed to $46.7 million or $0.51 per share from $60.9 million or $0.67 per share last year. Non-GAAP EPS jumped 62.3% to $0.99.

Revenue climbed 31% to $567.1 million. Billings soared 32.5% to $721 million. The top line benefited from robust new customer acquisition and lifetime value expansion. The company continues to capture market share at rates that far outpace the competition.

Looking ahead into the fourth quarter of 2018, Palo Alto expects total revenue of $625 million to $635 million, which represents a growth of 23-25%. Total billings are predicted to be $815-$830 million, and non-GAAP EPS are anticipated to be $1.15-$1.17 for the fourth quarter.

For fiscal 2018, the company now expects total revenue of $2.24-$2.25 billion and non-GAAP EPS of $3.86-$3.89. Total billings are now predicted to be $2.807-$2.822 billion.

Shares of Palo Alto ended Friday’s regular trading session up 0.53% at $209.19 on the NYSE. The stock had been trading between $126.56 and $211.71 for the past 52 weeks.