Palo Alto Networks shares rise more than 14% after earnings report

Shares of Palo Alto Networks rose greater than 14% in Monday morning buying and selling, persevering with a rally that started when the safety software program vendor reported stronger-than-expected fiscal fourth-quarter earnings final week.

The firm reported adjusted quarterly earnings per share of $1.44 versus a Refinitiv analyst consensus of $1.28 per share. While Palo Alto missed consensus estimates for income, which got here in at $1.95 billion versus $1.96 billion anticipated for the quarter ended July 31, the corporate mentioned that income elevated 26% in contrast with the year-ago quarter.

There had been some concern amongst analysts that Palo Alto was slated to report dangerous news alongside its earnings, because it scheduled its earnings launch date for after the bell Friday. Historically, it is a scheduling slot typically adopted by firms with poor numbers to report. As a outcome, Palo Alto inventory fell so far as $208.02 after it introduced its earnings launch date.

The premarket rally implies that Palo Alto’s shares have largely recovered from the plunge. Palo Alto CEO Nikesh Arora described the pre-earnings concern as making for “some very interesting reading” in analyst stories.

By Sunday night, these issues had evaporated. Deutsche Bank analyst Brad Zelnick reiterated a purchase score on the inventory and took his value goal from $225 to $270.

“Our call for a possible transition away from hardware was unnecessary as the company put up impressive F4Q results and multi-year guidance without the need for any unusual theatrics; no management change, no M&A, no strategic pivots, and importantly no guide down on growth,” Zelnick wrote in a Sunday notice to shoppers.

In a notice to shoppers Monday morning, Bank of America analyst Tal Liani famous that “the company’s focus on profitability and better cost controls helped drive a 16c beat to consensus’ $1.28.”

Bank of America took its value goal from $270 to $290, writing that each steering and outcomes “were better-than-expected given the unconventional timing of the earnings release.”

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