Banking

Palo Alto Stock Rises As Cybersecurity Firm’s Earnings Top Estimates

Palo Alto Networks (PANW) reported fiscal third-quarter earnings and revenue on Thursday that topped analyst estimates. Palo Alto stock rose as the cybersecurity firm’s July-ending quarter revenue and billings guidance came in slightly above Wall Street targets.




X



Including acquisitions, Palo Alto’s earnings for the April quarter were $1.38 per adjusted share, up 18% from the year-earlier period. Revenue rose 24% to $1.1 billion, the company said. Billings jumped 27% to $1.3 billion vs. estimates for 21.5% growth.

Analysts expected earnings of $1.28 a share on sales of $1.06 billion for the period ended April 30. A year earlier, Palo Alto earnings were $1.17 a share on sales of $869.4 million.

Palo Alto stock climbed 5.7% to near 362 in extended trading on the stock market today.

Meanwhile, the company has spent over $3 billion making 10 acquisitions over the past three years. With roots in the “firewall” network security market, Palo Alto aims to build a broad cloud-based security platform.

Palo Alto Stock: Earnings Guidance Edges By Estimates

For the current quarter ending in July, Palo Alto expects earnings of $1.43 per share at the midpoint of its guidance, with revenue of $1.17 billion. Analysts had predicted earnings of $1.42 a share on revenue of $1.16 billion. Palo Alto forecast billings of $1.71 billion compared with analyst estimates of $1.63 billion.

The cybersecurity stock trades well below an entry point of 403.10. Most likely, Palo Alto stock will need to form a new base to be actionable.

Additionally, Palo Alto stock owns an IBD Relative Strength Rating of only 44 out of a possible 99, according to IBD Stock Checkup.

Palo Alto is exploring a new equity structure. And one option, analysts say, would be creating a tracking stock to unlock the value of the company’s cloud business.

One key financial metric for Palo Alto, analysts say, is annual recurring revenue for its next-generation cloud business. Palo Alto is just one cybersecurity stock to watch.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

How This IBD Tool Simplifies The Search For Top Stocks

Find Compelling Growth Stocks With IBD’s Stock Of The Day

Get A Free Trial Of IBD Leaderboard

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists



Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button