Palo Alto Networks (PANW, $235.55) rallies on higher-than-expected fiscal Q2 earnings and $1 billion stock buyback plan
Palo Alto Networks reported better-than-expected earnings for the fiscal second quarter, and also announced a stock buyback program - leading to its shares jumping +11% in after-hours trading Tuesday.
The cybersecurity company raked in adjusted earnings of $1.51 per share in the three months ending January, beating analysts’ estimates of $1.22 per share (based on Refinitiv data). Quarterly revenue of $711.2 million came in higher compared to analysts’ expected $682 million ((based on Refinitiv data). That marks a +30% year-over-year surge in revenue for the quarter. Product revenues, grew +33% to $271.6 million, while those from services increased +29% to $439.6 million.
Palo Alto also announced that its board authorized up to $1 billion in share repurchases, and introduced its Cortex AI-based security platform.
The company is apparently gung-ho in bolstering its cloud solutions and cyber security business. Last week, it announced its $560 million acquisition of Demisto, a startup specializing in security orchestration, incident management and interactive investigation.
For the fiscal third quarter, Palo Alto projects adjusted earnings in the range of $1.23 to $1.25 per share. It expects revenue to be in the range of $697 million to $707 million for the quarter - that puts the midpoint at $702 million, which is higher than the $696.7 million FactSet estimate.
PANW in downward trend: price expected to drop as it breaks its higher Bollinger Band on August 20, 2024
PANW broke above its upper Bollinger Band on August 20, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 45 similar instances where the stock broke above the upper band. In of the 45 cases the stock fell afterwards. This puts the odds of success at .
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