Why Palo Alto Networks (PANW) Stock Is Up in After-Hours Trading Today

NEW YORK (TheStreet) -- Shares of Palo Alto Networks  (PANW) rose 3.61% to $92.50 in after-hours trading Tuesday after the network security company reported fourth-quarter earnings and issued first-quarter guidance that surpassed analysts' expectations.

The company reported adjusted earnings per diluted share of 11 cents, up from 7 cents in the same period one year earlier. Revenue increased year-over-year to $178.23 million from $112.39 million. The consensus estimate called for Palo Alto Networks to report adjusted EPS of 11 cents on revenue of $161.25 million.

For the first quarter of 2015, the company expects adjusted earnings per diluted share of 12 cents on revenue in the range of $178 million to $182 million, which would represent year-over-year revenue growth of 39% to 42%. Analysts expect EPS of 12 cents on revenue of $173.9 million.

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Separately, 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."

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

PANW Chart PANW data by YCharts

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