NEW YORK (TheStreet) --Palo Alto Networks (PANW - Get Report) shares are gaining 0.96% to $186.76 on Monday after the security firm reported Apple's (AAPL - Get Report) first-ever security breach on its app store, The Wall Street Journal reports.
"XcodeGhost is a very harmful and dangerous malware that has bypassed Apple's code review and made unprecedented attacks on the iOS ecosystem," Palo Alto Networks stated.
In response to the attack, Apple responded, "To protect our customers, we've removed the apps from the App Store that we know have been created with this counterfeit software and we are working with the developers to make sure they're using the proper version of Xcode to rebuild their apps."
While a total of more than three dozen apps were infected with the malware, initial investigation found that there was no personal data leakage, BBC.com stated.
Separately, TheStreet Ratings team rates PALO ALTO NETWORKS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PALO ALTO NETWORKS INC (PANW) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time. "
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Communications Equipment industry. The net income has significantly decreased by 43.4% when compared to the same quarter one year ago, falling from -$32.06 million to -$45.97 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, PALO ALTO NETWORKS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for PALO ALTO NETWORKS INC is currently very high, coming in at 76.85%. Regardless of PANW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PANW's net profit margin of -16.19% significantly underperformed when compared to the industry average.
- PANW's debt-to-equity ratio of 1.00 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.97 is weak.
- PALO ALTO NETWORKS INC's earnings per share declined by 34.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PALO ALTO NETWORKS INC continued to lose money by earning -$2.02 versus -$3.03 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus -$2.02).
- You can view the full analysis from the report here: PANW