Palo Alto Networks reported stronger-than-expected 4Q results on Monday as the COVID-19 pandemic-led work-from-home trend boosted demand for network security products.
Palo Alto’s (PANW) 4Q revenues grew 18% to $950.4 million year-on-year, surpassing Street estimates of $924 million. The network security solution provider’s adjusted EPS improved by a penny to $1.48 from $1.47 reported in the year-ago quarter, beating analysts’ expectations of $1.39. Its billings, which reflect future business contracts, surged 32% to $1.4 billion and exceeded the Street forecast of $1.2 billion.
Palo Alto’s CEO Nikesh Arora said, “We had a strong finish to our fiscal year, driven by strong execution, work-from-home tailwinds, and continued success in next-gen security.” (See PANW stock analysis on TipRanks).
Robert W. Baird analyst Jonathan Ruykhaver reiterated a Buy rating on the stock saying “Overall, we believe PANW is moving in a positive strategic direction with its next-gen security offerings and look to see management execute to this strategy.”
Overall, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 17 Buys and 2 Holds. With shares up 15.5% year-to-date, the average price target of $300.71 implies upside potential of another 12.6%.
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