Palo Alto Networks Sees Big Gains
As a result of the COVID-19 pandemic Palo Alto Networks Inc. share prices drastically rose in premarket trade on Friday caused by quarterly results and outlook that beat Wall Street estimates.
The cybersecurity company "reported a fiscal third-quarter loss of $74.8 million, or 77 cents a share, compared with a loss of $20.2 million, or 21 cents a share, in the year-ago period. Adjusted earnings were $1.17 a share, compared with $1.31 a share in the year-ago period. Revenue rose to $869.4 million from $726.6 million in the year-ago quarter", Market Watch reports.
Palo Alto Networks predicts earning of $1.37 to $1.40 a share for their adjusted fiscal fourth-quarter earnings. The company predicts revenue to be between $915 million to $925 million. Analysts anticipate earning of $1.31 a share from a revenue of $916.8 million.
As millions work from home as a result of the Coronavirus pandemic Palo Alto Networks products such as GlobalProtect and Prisma Access, have become crucial to many businesses as they proved secure network cloud access.
Market Watch quotes Palo Alto Networks Chief Executive Nikesh Arora "The world will likely be in a state of transition over the next 12 to 18 months due to the Covid-19 pandemic… We believe this will prompt key trends to accelerate, including remote working models, shift to the cloud, and focus on AI/ML and automation to drive effective cybersecurity outcomes."
Shares of Palo Alto Networks rallied 6% premarket despite being down 0.8% for the year. This comes at a time when the S&P 500 index is down 9% and the Nasdaq Composite Index is up 3.5%.