What's Going On With Palo Alto Networks Stock Tuesday?

Author: Adam Eckert | August 20, 2024 10:32am

Palo Alto Networks Inc (NASDAQ:PANW) shares are trading higher Tuesday after the company reported better-than-expected financial results, authorized a new buyback and issued strong guidance. Multiple analysts also raised price targets on the stock following the print.

• Q4 Revenue: $2.189 billion, versus estimates of $2.162 billion

• Q4 EPS: $1.51, versus estimates of $1.41

Total revenue was up 12% year-over-year. Remaining performance obligations grew 20% year-over-year to $12.7 billion. Next-generation security annual recurring revenue increased 43% year-over-year to $4.2 billion.

"We finished off the year with strong execution on our platformization strategy in Q4. As we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution," said Nikesh Arora, chairman and CEO of Palo Alto Networks.

Palo Alto's board authorized an additional $500 million for share repurchases, bringing the company's remaining buyback authorization up to $1 billion. The buyback program is set to expire at the end of 2025.

Outlook: Palo Alto expects fiscal first-quarter revenue to be in the range of $2.1 billion to $2.13 billion versus estimates of $2.1 billion. The company expects first-quarter adjusted earnings to be between $1.47 and $1.49 per share versus estimates of $1.43 per share.

Palo Alto expects full-year 2025 revenue to be between $9.1 billion and $9.15 billion versus estimates of $9.11 billion. The company anticipates full-year earnings between $6.18 and $6.31 per share versus estimates of $6.19 per share.

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Analyst Changes:

• BMO Capital analyst Keith Bachman maintained Palo Alto with an Outperform and raised the price target from $334 to $390.

• Deutsche Bank analyst Brad Zelnick maintained Palo Alto with a Buy and raised the price target from $330 to $395.

• Keybanc analyst Eric Heath maintained Palo Alto with an Overweight and raised the price target from $380 to $400.

• Needham analyst Alex Henderson maintained Palo Alto with a Buy and raised the price target from $345 to $385.

• Piper Sandler analyst Rob Owens maintained Palo Alto with a Neutral and raised the price target from $300 to $330.

• Bernstein analyst Peter Weed maintained Palo Alto with an Outperform and raised the price target from $364 to $399.

• Stifel analyst Adam Borg maintained Palo Alto with a Buy and raised the price target from $360 to $385.

• RBC Capital analyst Matthew Hedberg maintained Palo Alto with an Outperform and raised the price target from $390 to $410.

• Wells Fargo analyst Andrew Nowinski maintained Palo Alto with an Overweight and raised the price target from $385 to $416.

PANW Price Action: Palo Alto shares were up 7.53% at $369.20 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.

Posted In: PANW