Palo Alto Networks Inc (NYSE:PANW) shares surged Monday, continuing an extended rally that kicked off with an unorthodox decision to report earnings after the market closed on Friday.
The stock is up nearly 15% to $241.07 Monday morning after the cybersecurity company reported earnings of $1.44 per share, up from $0.01 a year ago and topping expectations of $1.28, on revenue of $1.95 billion, up 26% and just shy of expectations of $1.96 billion.
Investors feared a much grimmer picture when the company announced when it would release its earnings, so much so that its shares had fallen 16% in August.
Palo Alto CEO Nikesh Arora said there was a method to the madness, admitting it “made for some very interesting reading” in analyst notes.
Now, with those fears seemingly assuaged, Bank of America raised its price target on the stock to $290 from $270.
“The company’s focus on profitability and better cost controls helped drive a $0.16 beat to consensus’ $1.28,” analysts wrote.
Looking ahead, Palo Alto projects fiscal first-quarter revenue between $1.82 billion and $1.85 billion and full-year revenue between $8.15 billion and $8.2 billion. That’s below Street expectations of $1.93 billion and $8.38 billion, respectively.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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