Palo Alto Networks Tops Estimates, Raises Guidance

Strong cybersecurity trends seen continuing in fiscal fourth quarter.
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Palo Alto Networks, Inc.  (PANW) - Get Report  topped earnings estimates and raised guidance after the bell Thursday. 

The company reported fiscal third-quarter revenue of $1.1 billion and non-GAAP net income of $1.39 per share 

Palo Alto Networks had been expected to report earnings of $1.29 a share, on sales of $1.1 billion, based on a FactSet survey of 33 analysts.

In the same period a year ago the company posted earnings of $1.17 a share on sales of $869.4 million.

"The work-from-home shift earlier in the year and recent cybersecurity issues have increased the focus on security," said Nikesh Arora, chairman and CEO, in a statement. "We are pleased to be raising our guidance for fiscal year 2021 as we see these trends continuing into our fiscal fourth quarter, bolstering our confidence in our pipeline," he added.

Palo Alto Networks forecast fiscal fourth-quarter revenue of $1.165 billion to $1.175 billion and diluted non-GAAP net income per share of $1.42 to $1.44.

For the full fiscal year the company said it is raising guidance to revenue of $4.2 billion to $4.21 billion and diluted non-GAAP net income per share of $5.97 to $5.99.

Shares of Palo Alto Networks rose $20.40, or 5.95%, to $363 in after-hours trading Thursday. The stock gained 2.1% in the regular session.

Elsewhere, stocks of cyber security companies rose Thursday.

The Prime Cyber Security ETF  (HACK) - Get Report  rose 95 cents, or 1.7%, to 56.90. The First Trust NASDAQ Cybersecurity ETF  (CIBR) - Get Report  rose 80 cents, or 1.9%, to 43.39.

Among individual gainers, FireEye  (FEYE) - Get Report shares rose 76 cents, or 3.7%, to $21.46, Zscaler  (ZS) - Get Report shares rose $5.92, or 3.6%, to $170.73, and Splunk  (SPLK) - Get Report shares rose $3.49, or 3.1%, to $116.26.