Oppenheimer Remains bullish on Palo Alto Networks (PANW) Following In-Line 4Q Results
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Oppenheimer reiterated an Outperform rating and $177.00 price target on Palo Alto Networks (NYSE: PANW) following the company's 4Q earnings report. PANW reported revenue of $400.8M, ahead of the Street's $389.8M forecast. EPS matched consensus at $0.50.
Analyst Shaul Eyal commented, "PANW reported essentially in-line F4Q16 results, beating the Street's revenue estimates ($400.8M vs. consensus' $389.8M), and reporting in-line EPS ($0.50). However, CFFO of $187.5M came shy of consensus' $190.2M view, and operating margins of 18.1% were below consensus' 18.6% driven by a higher S&M expense. The solid revenue growth (+41.2%) was driven by SaaS-based subscription services (+66% YoY), particularly Wildfire, Traps, and the VM-Series—offerings we envision to be gaining strong momentum over the course of the next year. PANW announced the "deferred sales commissions" project will start to take effect next quarter (F1Q17)— expected to contribute an additional $0.25 to FY17E EPS. While growth is moderating, it is still expected to stabilize at a CAGR of low to mid-30's%. Maintain Outperform."
Shares of Palo Alto Networks closed at $143.45 yesterday.
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