Why Palo Alto Networks Stock Is Surging After Hours

Palo Alto Networks Inc PANW shares are trading higher in Thursday's after-hours session after the company reported better-than-expected financial results and raised guidance.

Palo Alto said fiscal third-quarter revenue grew 29% year-over-year to $1.39 billion, which beat the $1.36-billion estimate, according to data from Benzinga Pro. The cybersecurity company reported quarterly earnings of $1.79 per share, which beat the estimate of $1.68 per share. Fiscal third-quarter billings grew 40% year-over-year to $1.8 million. 

"On the back of this strength across our portfolio, we are again raising our guidance for the year across revenue, billings and earnings per share," said Nikesh Arora, chairman and CEO of Palo Alto.

Palo Alto said it expects fiscal fourth-quarter revenue to be between $1.53 billion and $1.55 billion. The company expects adjusted earnings to be between $2.26 and $2.29 per share. Fourth-quarter bookings are expected to be between $2.32 billion and $2.35 billion.

Palo Alto guided for full-year revenue of $5.48 billion to $5.5 billion, representing growth of approximately 29% year-over-year.

PANW 52-Week Range: $331.82 - $640.90

The stock was up 11.9% in after hours at $488.50 at press time.

Photo: harshahars from Pixabay.