What Analysts Are Saying About Palo Alto Networks After Earnings

By Chris Lange Updated Jan 13, 4:04AM EST · Published Aug 31, 10:05AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

What Analysts Are Saying About Palo Alto Networks After Earnings — © Thinkstock

Palo Alto Networks Inc. (NYSE: PANW) reported fiscal fourth-quarter financial results after the markets closed on Tuesday. This cybersecurity firm posted relatively solid results for its fiscal fourth-quarter. However, the win in this quarter did not balance out the weaker guidance for the coming quarter. As a result, analysts adjusted their targets accordingly, although some were more positive than others.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying after the release.

The company said that it had $0.50 in earnings per share (EPS) on $400.8 million in revenue, versus the consensus estimates from Thomson Reuters that called for $0.50 in EPS and revenue of $389.7 million. In the same period of last year, the company posted EPS of $0.28 and $283.88 million in revenue.

In terms of the outlook for the fiscal first quarter, the company expects to have $0.51 to $0.53 in EPS on $396 million to $402 million in revenue. Consensus estimates are calling for EPS of $0.56 and $402.23 million in revenue.

[nativounit]

For fiscal 2017, the company expects to have EPS in the range of $2.75 to $2.80, compared to the consensus estimate of $2.64.

The board of directors authorized a $500 million share repurchase program, which is expected to expire at the end of August, 2018. Keep in mind that Palo Alto Networks has a total market cap of nearly $13 billion.

A few analysts weighed in on Palo Alto Networks after earnings were reported:

BTIG Research reiterated Buy rating.
RBC Capital Markets has an Outperform rating and lowered its target to $175 from $185.
Nomura has a Buy rating and lowered its price target to $180 from $200.
Goldman Sachs has a Buy rating and raised its price target to $175 from $165.
Barclays has an Overweight rating and raised its price target to $200 from $184.
Wunderlich reiterated a Buy rating with a $190 price target.
Morgan Stanley reiterated an Overweight rating with a $185 price target.
Raymond James reiterated an Outperform rating.
Needham reiterated a Hold rating.
Maxim has a Buy rating but lowered its price target to $185 from $215.
Citigroup has an Outperform rating and lowered its price target to $165 from $180.
Royal Bank of Canada has an Outperform rating and lowered its target to $175 from $185.

Shares of Palo Alto Networks were down 7.6% at $132.57 early Wednesday, with a consensus analyst price target of $183.58 and a 52-week trading range of $111.09 to $194.73.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.