Palo Alto Networks: Color on Qtr- Analysts Upbeat Following Strong Earnings
- Topeka Capital reiterates Buy rating and $175 tgt following 3QF15 results that surpassed expectations. More impressive than the revenue (+55%) and EPS (+109%) growth was the 56% billings growth, fully 1100bps above consensus expectations. PANW remains the horse to beat in next generation security.
- FBR Capital notes PANW reported yet another rock solid quarter with F3Q15 (April) results coming in ahead of expectations on the top line, bottom line, and billings, while delivering an F4Q15 (July) outlook that also came in above the Street. Rapid adoption of the company's unique end-to-end advanced security platform appears to be garnering robust momentum. Overall, while the stock continues to grind higher, firm believes last night's strong F3Q15 results/F4Q15 guidance should give the Street further confidence around Palo Alto's fundamentals with the CirroSecure acquisition (SaaS application security) also adding more upsell/cross-sell opportunities. Maintaining Outperform rating, raising tgt from $165 to $175.
- Needham Research notes PANW performance in the April quarter was strong as anticipated, and was a healthy "beat" on revenue, billings, and EPS. The intensity around network security software solutions at the RSA conference in April was palpable, and firm sees PANW as a clear mindshare leader in "core" network security and next-gen firewall solutions. Firm is raising tgt $160 to $182.
- Stifel Research notes PANW results came in ahead of investor expectations across all key metrics, including revenue, EPS, and billings. While the company has previously noted that Q2 and Q4 tend to represent the strongest growth quarters for the company, both billings and revenue growth accelerated on a y/y basis. In addition, Palo Alto delivered another quarter of margin expansion. Firm is raising tgt from $165.50 to $180.
- RBC Capital notes Palo Alto reported another very strong quarter highlighted by the highest billings growth of the year at 56% as it continues to take share by displacing legacy competitors. Guidance goes higher but likely remains conservative as firm maintains Outperform rating and increase price target to $180 from $175.