After-Hours Alert: Why Palo Alto Networks Stock Is Surging

After-Hours Alert: Why Palo Alto Networks Stock Is Surging

Palo Alto Networks Inc PANW shares are trading higher in Monday's after-hours session after the company reported strong financial results, issued guidance and announced a three-for-one stock split.

Palo Alto said fiscal fourth-quarter revenue increased 27% year-over-year to $1.55 billion, which beat average analyst estimates of $1.54 billion, according to Benzinga Pro. The cybersecurity company reported quarterly adjusted earnings of $2.39 per share, which is up from $1.60 per share year-over-year.

"We were pleased by our fourth quarter results, which included GAAP profitability for the first time in four years," said Nikesh Arora, chairman and CEO of Palo Alto.

Palo Alto said it expects fiscal first-quarter revenue to be between $1.535 billion and $1.555 billion versus average analyst estimates of $1.54 billion. The company expects fiscal first-quarter adjusted earnings to be between $2.03 and $2.06 per share.

Palo Alto expects full-year revenue to be between $6.85 billion and $6.9 billion versus average analyst estimates of $6.74 billion. The company expects full-year adjusted earnings to be between $9.40 and $9.50 per share. 

Palo Alto also announced that its board approved and declared a three-for-one stock split in the form of a stock dividend. Each stockholder of record at the close of business on Sept. 6 will receive two additional shares (on Sept. 13) for each share held on the record date. Trading will begin on a split-adjusted basis on Sept. 14.

Palo Alto is a pure-play cybersecurity vendor that sells security appliances, subscriptions and support to enterprises, government entities and service providers.

PANW Price Action: Palo Alto has a 52-week high of $640.90 and a 52-week low of $421.54.

The stock was up 7.41% in after hours at $545.72 at press time.

Photo: aichinger76 from Pixabay.

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