Palo Alto Networks (PANW) stock is trading comfortably higher Tuesday after the cybersecurity company beat top- and bottom-line expectations for its fiscal fourth quarter and issued a strong outlook.
In the three months ended July 31, Palo Alto Network's revenue increased 12.1% year-over-year to $2.2 billion. Its earnings per share (EPS) was up 4.9% from the year-ago period to $1.51.
"We finished off the year with strong execution on our platformization strategy in Q4," said Palo Alto Networks CEO Nikesh Arora in a statement. "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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Palo Alto Networks' results topped expectations. Wall Street was anticipating revenue of $2.16 billion and earnings of $1.41 per share, according to CNBC.
For the first quarter of fiscal 2025, the company said it anticipates revenue in the range of $2.1 billion to $2.13 billion and earnings per share to arrive between $1.47 to $1.49. This compares to analysts' forecasts for revenue of $2.1 billion and earnings of $1.43 per share, according to Yahoo Finance.
For the all of fiscal 2025, Palo Alto Networks said it anticipates revenue in the range of $9.1 billion to $9.15 billion and EPS of $6.18 to $6.31. Analysts, meanwhile, are targeting revenue of $9.11 billion and earnings of $6.19 per share.
The report also showed that the company's board of directors approved an additional $500 million in share buybacks, bringing the total authorization to $1 billion. Stock buybacks can help boost the share price.
Is Palo Alto Networks stock a buy, sell or hold?
Palo Alto Networks has been volatile on the price charts in 2024, but shares are still up 25% for the year to date. Unsurprisingly, Wall Street is bullish on the cybersecurity stock.
For one, the consensus recommendation of the 54 analysts following PANW that are tracked by S&P Global Market Intelligence is Buy. And while the average price target is $373.16, representing implied upside of about 3% to current levels, analysts may very well revise their price targets higher following the strong quarter.
In fact, financial services firm Wedbush raised its price target on PANW stock this morning to $400 from $375, while maintaining its Outperform rating (equivalent to a Buy).
"We continue to believe the platform approach in cybersecurity is the right long-term move for PANW and [it] will ultimately emerge from this transition in a stronger market position," said Wedbush analyst Daniel Ives in a note to clients.
Related Content
-
Ask the Editor: Questions on 529 Plan Rollovers to a Roth IRAAsk the Editor In this week's Ask the Editor Q&A, we answer four questions from readers on transferring 529 plan money to a Roth IRA.
-
Kiplinger News Quiz, Sept 12 — What is the Taylor Swift Tax?Quiz A multi-million-dollar Google lawsuit and "Taylor Swift tax" made Kiplinger headlines this week — but why? Test your knowledge of this week's financial news.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can HelpArtificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Hot August CPI Report Doesn't Shift the Rate-Cut Needle: What the Experts SayThe August CPI came in higher than forecast on a monthly basis, but Wall Street still expects a rate cut at next week's Fed meeting.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial PlannerHolding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their CommunitiesCredit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market TodayAnother down day for Apple held the Dow Jones Industrial Average back, though.
