Palo Alto Networks Inc (NASDAQ:PANW) shares are trading higher Tuesday after the company reported strong financial results, issued guidance and announced a three-for-one stock split.
Palo Alto said fiscal fourth-quarter revenue increased 27% year-over-year to $1.55 billion, which beat average analyst estimates of $1.54 billion, according to Benzinga Pro. The cybersecurity company reported quarterly adjusted earnings of $2.39 per share, which is up from $1.60 per share year-over-year.
"We were pleased by our fourth quarter results, which included GAAP profitability for the first time in four years," said Nikesh Arora, chairman and CEO of Palo Alto.
Palo Alto said it expects fiscal first-quarter revenue to be between $1.535 billion and $1.555 billion versus average analyst estimates of $1.54 billion. The company expects fiscal first-quarter adjusted earnings to be between $2.03 and $2.06 per share.
Palo Alto expects full-year revenue to be between $6.85 billion and $6.9 billion versus average analyst estimates of $6.74 billion. The company expects full-year adjusted earnings to be between $9.40 and $9.50 per share.
Palo Alto also announced that its board approved and declared a three-for-one stock split in the form of a stock dividend. Each stockholder of record at the close of business on Sept. 6 will receive two additional shares (on Sept. 13) for each share held on the record date. Trading will begin on a split-adjusted basis on Sept. 14.
Analyst Assessment:
- Keybanc analyst Michael Turits maintained Palo Alto with an Overweight and raised the price target from $630 to $680.
- Barclays analyst Saket Kalia maintained Palo Alto with an Overweight and raised the price target from $605 to $695.
- Piper Sandler analyst Rob Owens maintained Palo Alto with an Overweight and raised the price target from $650 to $690.
- Credit Suisse analyst Phil Winslow maintained Palo Alto with an Outperform and raised the price target from $635 to $685.
- Wells Fargo analyst Andrew Nowinski maintained Palo Alto with an Overweight and raised the price target from $700 to $750.
- UBS analyst Roger Boyd maintained Palo Alto with a Neutral and raises the price target from $545 to $590.
See Also: S&P 500, Nasdaq Futures Trade Modestly Higher On Tuesday As Rate Hike Fears Keep Wall Street Muffled
PANW Price Action: Palo Alto has a 52-week high of $640.90 and a 52-week low of $421.54.
The stock was up 9.62% at $556.90 at press time.
Photo: Gerd Altmann from Pixabay.
