NEW YORK (TheStreet) -- Shares of Palo Alto Networks (PANW) are rallying by 3.85% to $166.84 in mid-morning trading on Thursday morning, after the company posted strong third quarter earnings results, which beat analysts' expectations.
Yesterday, the company reported revenue of $234.2 million, or 23 cents per share, compared to revenue of $150.7 million, or 11 cents per share in the same quarter a year ago. Overall, revenue for the fiscal third quarter 2015 grew by 55% when compared to the year ago period.
Analysts polled by Thomson Reuters were expecting Palo Alto Networks to report earnings of 20 cents per share on revenue of $223.22 this quarter.
After the California-based company released its quarterly report, analysts at Deutsche Bank raised their price target to $200 from $170.
"Year-over-year growth was driven by new customer acquisition and expansion in existing accounts, resulting in substantial growth across all three components of our business: product, recurring subscription and support," CEO Steffan Tomlinson said.
Palo Alto Networks provides enterprise security platform to service providers and government entities worldwide.
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, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."