Nikesh Arora, Palo Alto Networks
Adam Galica | CNBC
Shares of Palo Alto Networks rose 12% in pre-market buying and selling Monday, persevering with a rally that started when the safety software program vendor reported stronger than anticipated 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 for the quarter ended July 31, the corporate mentioned that income elevated 26% in comparison with the year-ago quarter.
There had been some concern amongst analysts that Palo Alto was slated to report dangerous information 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 end result, Palo Alto inventory fell so far as $208.02 after it introduced its earnings launch date.
The pre-market 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 studies.
By Sunday night, these considerations had additionally evaporated. Deutsche Bank analyst Brad Zelnick reiterated a Buy score on the inventory and took his worth 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 observe to shoppers.
In a observe 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 worth goal from $270 to $290, writing that each steering and outcomes “were better-than-expected given the unconventional timing of the earnings release.”
WATCH: Palo Alto’s surge in product progress underdoing digestion, analyst says
Source: www.cnbc.com”