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.
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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.
