Palo Alto stock soars 5% on upbeat earnings and boosted outlook

Palo Alto Networks (PANW.US) stock jumped 5% as the cybersecurity company topped Wall Street estimates and boosted its full-year outlook. The company’s revenue rose to $1.07 billion in the fiscal third-quarter from $869.4 million in the year-ago quarter (FactSet consensus: $1.06 billion). Adjusted earnings amounted to $1.38 a share (vs $1.17 in the year-ago period) whereas analysts expected $1.29 a share. 

Palo Alto Networks boosted its outlook as well. For the year, the firm expects adjusted earnings of $5.97 to $5.99 a share on revenue of $5.28 to $5.30 billion. Meanwhile, Wall Street analysts expect $5.86 a share on revenue of $4.18 billion. 

"The work-from-home shift earlier in the year and recent cybersecurity issues have increased the focus on security," said Nikesh Arora, chairman and CEO. "We are pleased to be raising our guidance for fiscal year 2021 as we see these trends continuing into our fiscal fourth quarter, bolstering our confidence in our pipeline," the CEO added.

Palo Alto Networks (PANW.US) is trading roughly 10% below its all-time highs from February. Stock opened with a bullish gap after solid earnings and boosted full-year outlook. Based on previous price reactions, $372 seems to be crucial resistance level. On the other hand, $310 level and an upward trendline (green lines) could serve as support areas. Source: xStation5