Nikesh Arora, president and CEO of Palo Alto Networks
Adam Galica | CNBC
Shares of Palo Alto Networks experienced a 12% surge in pre-market trading on Monday, prolonging a rally that commenced after the cybersecurity solutions provider reported better-than-expected fiscal fourth quarter earnings last week.
The company exceeded Refinitiv analyst consensus by reporting adjusted quarterly earnings per share of $1.44, compared to the expected $1.28 per share. Although Palo Alto fell short of revenue expectations for the quarter ended July 31, with $1.95 billion instead of the projected $1.96 billion, the company noted a 26% increase in revenue compared to the same period last year.
Analysts had expressed concerns about the timing of Palo Alto’s earnings release, which was scheduled for after the market closed on Friday. Historically, this timing has been associated with companies reporting negative figures. Consequently, Palo Alto’s stock initially dropped to $208.02 upon the announcement of the earnings release date.
The recovery of Palo Alto’s shares in pre-market trading indicates a rebound from this initial decline. CEO Nikesh Arora acknowledged the pre-earnings concerns as “some very interesting reading” in analyst reports.
WATCH: Jefferies’ Joseph Gallo discusses Palo Alto’s surge in product growth
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
