Palo Alto Networks Shares Are Trading Higher: What's Driving The Action?

Palo Alto Networks Inc PANW shares are trading higher Wednesday after the company reported better-than-expected quarterly results and issued strong earnings guidance. Several analysts raised price targets following the print.

• Q3 Revenue: $1.72 billion beat estimates of $1.71 billion
• Q3 EPS: $1.10 beat estimates of 93 cents

Revenues were up 24% year-over-year, while bookings climbed 26%. 

"Our team again executed well in a market that continues to become more challenging," said Nikesh Arora, chairman and CEO of Palo Alto Networks. 

Guidance: Palo Alto sees fiscal fourth-quarter revenue in the range of $1.937 billion and $1.967 billion versus estimates of $1.95 billion. Full-year revenue is expected to be between $6.88 billion and $6.91 billion versus estimates of $6.89 billion.

The company expects fourth-quarter adjusted earnings to be between $1.26 and $1.30 per share versus estimates of $1.20 per share. Full-year earnings are expected to be in the range of $4.25 to $429 per share versus estimates of $4.02 per share.

See Also: Nvidia Q1 Earnings Preview: Will Stock See A Repeat Of The Q4 Surge?

Analyst Assessment:

• Barclays analyst Saket Kalia raised the price target from $235 to $245.
• Wells Fargo analyst Andrew Nowinski raised the price target from $250 to $265.
• Mizuho analyst Gregg Moskowitz raised the price target from $220 to $230.
• Credit Suisse analyst Sami Badri raised the price target from $235 to $260.
• Wedbush analyst Daniel Ives raised the price target from $210 to $225.
• Evercore ISI Group analyst Peter Levine raised the price target from $215 to $240.
• Stifel analyst Adam Borg raised the price target from $225 to $240.

PANW Price Action: Palo Alto shares were up 4.22% at $197.75 Wednesday morning, per Benzinga Pro.

Photo: methodshop from Pixabay.