Why Palo Alto Networks (PANW) Stock Is Up Today

NEW YORK (TheStreet) -- Palo Alto Networks (PANW) stock added 7% to $74.35 by midafternoon Thursday after the network security developer reported better-than-expected profits in its third quarter. 

Over its April-ended quarter, the company earned 11 cents a share and generated revenue of $150.7 million. Analysts surveyed by Thomson Reuters had expected net income of 10 cents a share and sales of $146.22 million. 

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TheStreet Ratings team rates PALO ALTO NETWORKS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate PALO ALTO NETWORKS INC (PANW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."

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