Palo Alto Networks Inc (NASDAQ:PANW) shares are trading higher Friday after the company reported better-than-expected financial results and raised guidance.
Palo Alto said fiscal third-quarter revenue increased 29% year-over-year to $1.39 billion, which beat the estimate of $1.36 billion, according to data from Benzinga Pro. The cybersecurity company reported quarterly earnings of $1.79 per share, which beat the estimate of $1.68 per share. Fiscal third-quarter billings grew 40% year-over-year to $1.8 million.
"On the back of this strength across our portfolio, we are again raising our guidance for the year across revenue, billings and earnings per share," said Nikesh Arora, chairman and CEO of Palo Alto.
Palo Alto said it expects fiscal fourth-quarter revenue to be between $1.53 billion and $1.55 billion. The company expects adjusted earnings to be between $2.26 and $2.29 per share. Fourth-quarter bookings are expected to be between $2.32 billion and $2.35 billion.
Palo Alto also guided for full-year revenue of $5.48 billion to $5.5 billion, representing growth of approximately 29% year-over-year.
Analyst Assessment:
- Keybanc analyst Michael Turits maintained Palo Alto with an Overweight rating and raised the price target from $610 to $630.
- Deutsche Bank analyst Patrick Colville maintained Palo Alto with a Buy rating and raised the price target from $587 to $605.
- BMO Capital analyst Keith Bachman maintained Palo Alto with an Outperform rating and lowered the price target from $685 to $615.
- Citigroup analyst Fatima Boolani maintained Palo Alto with a Buy rating and raised the price target from $600 to $610.
See Also: Morning Brief: Top Financial Stories Dominating on Friday, May 20
PANW 52-Week Range: $331.82 - $640.90
The stock was up 11.8% at $488 at time of publication.
Photo: VIN JD from Pixabay.
