Shares of Palo Alto Networks (PANW) are slightly down in after-hours trading after the cybersecurity company reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at $1.51, which beat analysts’ consensus estimate of $1.41 per share. Sales increased by 12.8% year-over-year, with revenue hitting $2.2 billion. This beat analysts’ expectations of $2.163 billion.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Looking forward, management now expects revenue and adjusted earnings per share for Q1 2025 to be in the ranges of $2.10 billion to $2.13 billion and $1.47 to $1.49, respectively. For reference, analysts were expecting $2.103 billion in revenue along with an adjusted EPS of $1.42.
For Fiscal Year 2025, revenue is expected to land between $9.10 billion and $9.15 billion compared to estimates of $9.11 billion. Furthermore, the firm anticipates earnings per share of $6.18 to $6.31 versus expectations of $6.19 per share.
Although Palo Alto’s earnings and guidance exceeded expectations, the reason why shares saw a slight decline in after-hours trading is likely due to the company’s valuation. Indeed, it is likely that its current price-to-earnings ratio of 48.6x was already pricing in a slight earnings beat.
What Is the Price Target for PANW?
Turning to Wall Street, analysts have a Strong Buy consensus rating on PANW stock based on 32 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 42% rally in its share price over the past year, the average PANW price target of $350.96 per share implies 3% upside potential. However, it’s worth noting that estimates will change following today’s earnings report.
