Shares of Palo Alto Networks (PANW) are up 12% after the cybersecurity company issued financial results that exceeded Wall Street expectations.
The company announced fiscal fourth quarter earnings per share (EPS) of $1.44 U.S. versus $1.28 U.S. that had been expected by analysts who cover the company, according to Refinitiv data.
Revenue in the quarter ended July 31 totaled $1.95 billion U.S. versus $1.96 billion U.S. that was anticipated.
Revenue increased 26% from $1.6 billion U.S. a year earlier as demand for the company’s cybersecurity products grows around the world.
Somewhat ironically, Palo Alto Networks’ stock had declined 16% leading up to the latest earnings report as investors worried that the company’s decision to announce financial results after markets closed on a Friday (August 18) signalled potential problems.
Companies with bad news often bury their results after the close of trading on a Friday.
Looking ahead, Palo Alto Networks said it expects revenue of $1.82 billion U.S. to $1.85 billion U.S. for the current quarter, as well as full-year sales of $8.15 billion U.S. to $8.20 billion U.S.
That’s below analyst consensus expectations of $1.93 billion U.S. for the company’s current fiscal first quarter and $8.38 billion U.S. for the entire fiscal year, according to Refinitiv.
Prior to today’s (August 21) move higher, Palo Alto Networks’ stock had risen 24% over the last 12 months to trade at $209.69 U.S. per share.