Shares of Club name Palo Alto Networks (PANW) have plummeted by more than 18% since the start of the month amid a broader sell-off in the cybersecurity industry. But we still expect the cyber leader to outperform peers when it reports quarterly results Friday, as it continues to benefit from platform consolidation and diverse revenue streams. Palo Alto Networks is set to release earnings for its fiscal fourth quarter on Friday after the closing bell. Analysts expect the cyber firm to deliver revenue of $1.96 billion for the three months ended July 31, compared with $1.6 billion for the same period a year prior, according to Refinitiv. On a non-GAAP (generally accepted account principles) basis, earnings-per-share (EPS) should come in at $1.28, Refinitiv data showed, compared with $2.39 a share last year. Cyber backdrop Cybersecurity companies have come under pressure since Fortinet (FTNT) on Aug. 3 reported weaker forward guidance and noted that customer deals were being delayed — sending shares tumbling 25%, with knock-on effects for Palo Alto. Following Palo Alto’s subsequent unwarranted 10% drop, we upgraded our rating on the stock to a 1, or buy, from a 2 rating. Wall Street’s reaction was mixed. Barclays raised its price target on Palo Alto to $275 a share, from $245, while maintaining the equivalent of a buy rating on the stock. The firm predicted Palo Alto could reach a valuation of $100 billion over the next few years, a sizeable upside from its current $65 billion market capitalization. Meanwhile, RBC Capital Markets lowered its price target to $250 a share, from $277, citing near-term industry headwinds, while reiterating a buy-equivalent rating. PANW YTD mountain Palo Alto Networks (PANW) year-to-date performance. What we’re watching Palo Alto’s unusual decision to release its results — and hold its post-earnings conference call — after the closing bell on Friday has some on Wall Street scratching their heads. The last instance of a company in…
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