Why Palo Alto Stock Is Surging After Hours

Palo Alto Networks Inc PANW shares are trading higher in Tuesday's after-hours session after the cybersecurity company reported better-than-expected earnings results and issued strong earnings guidance. 

What Happened: Palo Alto said fiscal second-quarter revenue increased 26% year-over-year to $1.66 billion, which beat consensus estimates of $1.65 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $1.05 per share, which beat estimates of 78 cents per share.

"Our focus on driving profitable growth is reflected in our Q2 results. As a result, we are raising our cash flow margin and operating profitability targets as we remain focused on driving efficiency in our business," said Dipak Golechha, chief financial officer of Palo Alto Networks.

Palo Alto expects fiscal third-quarter revenue to be in a range of $1.695 billion to $1.725 billion versus estimates of $1.74 billion. The company expects third-quarter adjusted earnings to be in a range of 90 cents to 94 cents per share versus estimates of 78 cents per share.

Palo Alto sees full-year revenue in a range of $6.85 billion to $6.91 billion versus estimates of $6.89 billion. The company expects full-year adjusted earnings to be between $3.97 and $4.03 per share versus estimates of $3.42 per share.

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PANW Price Action: Palo Alto has a 52-week high of $213.63 and a 52-week low of $132.22.

The stock was up 5.7% after hours at $176.30 at time of publication, according to Benzinga Pro.

Photo: Johannes Weber from Flickr.