Shares of Palo Alto Networks rose 12% in expanded trading on Thursday after network security maker announced third-quarter results that were stronger than analysts had expected.

Here’s how the company did:

  • Income: $ 1.79 per share, adjusted against $ 1.68 per share, analysts had expected, according to Refinitiv.
  • Income: $ 1.39 billion versus $ 1.36 billion, analysts had expected, according to Refinitiv.

Palo Alto Networks said that for the quarter ended April 30, revenue grew 29% over the same period last year. Revenue jumped 30% in the previous quarter.

“We saw strong growth in the third quarter, a testament to the consistent work of our teams in leveraging strong trends in cybersecurity demand,” Palo Alto Networks CEO Nikesh Arora was quoted as saying.

Palo Alto Networks has watched Russian cyberattacks since the start of the war this quarter, and it is seeing greater interest in protection from corporations and government agencies across Europe, Arora told analysts during the conference.

However, war, inflation and supply shortages are creating problems for the company, Arora said. Higher component and shipping costs narrowed the company’s adjusted gross profit for the quarter, said Deepak Golechha, chief financial officer.

Supply restrictions are likely to persist for another year, Arora said.

In the quarter, Palo Alto Networks announced a next-generation firewall tool available exclusively through Amazon’s public cloud. The company also announced a tool that helps companies detect vulnerabilities in software supply chains following issues related to malicious Orion software updates from SolarWinds.

Managers have raised their recommendations for the entire fiscal year. They now expect adjusted earnings of $ 7.43 to $ 7.46 per share with revenue of $ 5.481 billion to $ 5.501 billion. Analysts polled by Refinitiv were looking for $ 7.29 adjusted earnings per share with revenue of $ 5.46 billion.

Before the close of trading, stocks fell nearly 21% since early 2022, while the S&P 500 fell about 18% over the same period.

This is the latest news. Please check here for updates.

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