Why Palo Alto Networks Is Trading Higher Today

Palo Alto Networks Inc (NYSE: PANW) is trading higher Friday morning after the company reported better-than-expected earnings and raised its guidance.

What Happened: Palo Alto Networks reported earnings of $1.38 per share, which beat the estimate of $1.28 per share. The company reported quarterly revenue of $1.1 billion, which beat the estimate of $1.06 billion.

Palo Alto Networks raised its full-year 2021 earnings guidance to $5.97 to $5.99 per share. It also raised its full year 2021 revenue guidance to $4.2 billion to $4.21 billion. 

"The work-from-home shift earlier in the year and recent cybersecurity issues have increased the focus on security. In particular, we saw a number of customers make large commitments to Palo Alto Networks across our three major platforms," said Nikesh Arora, chairman and CEO of Palo Alto Networks.

Related Link: Palo Alto Stock Soars, But Will It Hit A Wall Of Resistance?

Analyst Assessment: On Friday, Raymond James analyst Adam Tindle maintained Palo Alto Networks with an Outperform rating and raised the price target from $400 to $410.

Price Action: Palo Alto Networks traded as high as $403 and as low as $217.48 over a 52-week period. 

At last check Friday, the stock was up 5.96% at $363.

Photo courtesy of Palo Alto Networks.