5 Reasons to Buy Palo Alto Networks After Its Post-Earnings Pop
Palo Alto Networks (NYSE: PANW) recently posted strong third-quarter earnings that beat analysts' expectations. The cybersecurity company's revenue rose 24% year over year to $1.07 billion, beating estimates by $10 million, as its billings improved 27% to $1.29 billion.
Its adjusted net income grew 22% to $139.5 million, or $1.38 per share, which also cleared expectations by nine cents. But on a GAAP basis, its net loss widened from $74.8 million to $145.1 million, partly due to its high stock-based compensation expenses and recent acquisitions.
For the full year, Palo Alto expects its billings to grow 23%, its total revenue to increase 23%-24%, and its non-GAAP EPS to rise 22%-23%. All three estimates were higher than the guidance it provided in February. Its deferred revenue, a key indicator of future demand, grew 30% to $4.4 billion.
Source Fool.com
