Palo Alto Networks Inc (NYSE: PANW) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company reported its earnings, blowing away expectations. On top of that, strong guidance was offered to the investing public. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the earnings release, what we’re seeing from PANW, and what we’ll be watching for with regard to the stock ahead.
PANW Gains Big On Earnings
As mentioned above, Palo Alto Networks is having an incredibly strong day in the market today after announcing earnings for the second quarter. Of course, the earnings were positive, leading to excitement among investors. Here’s what we saw from the report:
- Earnings Per Share – In terms of earnings per share, PANW definitely did not disappoint. During the quarter, analysts expected that the company would generate earnings in the amount of $0.79 per share. However, the company actually reported earnings in the amount of $0.97 per share, blowing away expectations.
- Revenue – On the revenue side of the equation, the report also proved to be positive. During the quarter, analysts expected that the company would generate revenue in the amount of $525.4 million. However, the company actually reported revenue in the amount of $542.4 million. That proved to be growth of 28% year over year.
- Guidance – Finally, For the third quarter, Palo Alto Networks said that it expects revenue to come in between $538 and $548 million with earnings in the range between $0.94 per share and $0.96 per share. This is well ahead of analysts expectations of $0.81 per share in earnings on $531 million in revenue.
In a statement, Mark McLaughlin, CEO at PANW, offered the following:
We delivered a strong fiscal second quarter with total revenue growing 28 percent year over year to $542.4 million as we saw robust new customer acquisition and expansion in existing accounts.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. Not only did Palo Alto Networks beat expectations with regard to earnings and revenue, guidance proved to be positive. So, it’s no surprise to see that the stock is making a run for the top this morning. At the moment (9:22), PANW is trading at $179.09 per share after a gain of $9.77 per share or 5.77% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PANW. In particular, we’re looking to see a continuation in the strong year over year growth that the company saw in the second quarter. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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