NEW YORK (TheStreet) -- Palo Alto Networks (PANW) - Get Report stock is increasing 2.74% to $144.13 on heavy trading volume on Friday afternoon following the company's strong performance during the fiscal 2016 second quarter.

Before yesterday's market close, the Santa Clara, CA-based cybersecurity company reported earnings of 40 cents per share on revenue of $334.7 million for the quarter ended January 31.

Wall Street was anticipating earnings of 39 cents per share on revenue of $318.3 million for the quarter.

"Palo Alto's success across the board demonstrates a paradigm shift in security," Pacific Crest analysts said in a note this morning. "Its platform solution continues to resonate with customers and drive meaningful market-share gains."

On Thursday, shares of Palo Alto soared after the company released the results earlier than anticipated. The rally continued this morning, but the stock is being pressured by mixed fiscal 2016 third quarter guidance.

The company issued earnings guidance of 41 cents to 42 cents per share, below estimates of 45 cents per share. Revenue outlook was set at $335 million to $339 million, just above estimates of $334.64 million.

So far today, 5.78 million shares of Palo Alto have exchanged hands, compared with its average daily volume of 2.04 million shares.

TheStreet Recommends

Separately, Palo Alto has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's unimpressive growth in net income and generally disappointing stock performance.

You can view the full analysis from the report here: PANW

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

Image placeholder title


data by