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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 Palo Alto Networks Inc. 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.

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

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