Palo Alto Networks pops 10% as analysts praise 'monster' Q1 results, guidance
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Palo Alto Networks (NASDAQ:PANW) shares rose nearly 10% in premarket trading on Friday after the cybersecurity company reported first-quarter results and guidance that prompted praise from analysts. 
Wedbush Securities analyst Dan Ives, who has an outperform rating and $200 price target on Palo Alto Networks (PANW), called the guidance raise for fiscal 2023 "impressive," noting it provides "a testament to the companyâs ability to deliver in this accelerating cyber backdrop."
"In a similar fashion to last quarter, [Palo Alto Networks'] continued performance is yet another positive data point showing the growth the cybersecurity sector is seeing poised to continue over the next few years," Ives wrote in a note to clients. "With the continuation of the shift to the cloud for [Palo Alto Networks] and its impressive performance, this name remains one of our top choices to own in this environment, and look forward to its growth story looking forward."
On back of the results, other cybersecurity companies also rose in premarket trading, including CrowdStrike Holdings (CRWD), Fortinet (FTNT), CyberArk (CYBR) and CheckPoint Software (CHKP). 
Ives added that Palo Alto's (PANW) billings and next-generation security annual recurring revenue rates were "the stars of the show," with billings at $1.75B and ARR at $2.11, both well above Wall Street expectations.
For the period October 31, Palo Alto Networks (PANW) said it earned an adjusted 83 cents per share on $1.6B in revenue, topping estimates of 83 cents per share and $1.55B in revenue.
A consensus of analysts were expecting Palo Alto (PANW) to earn 69 cents per share on $1.54B in revenue during the period.
The company also said its billings growth grew 27% year-over-year and its remaining performance obligations were $8.3B, ahead of some analysts' estimates.
Looking ahead to the next quarter, Palo Alto Networks (PANW) said it expects adjusted earnings per share between 76 and 78 cents per share, with revenue between $1.63B and $1.66B. Billings is forecast to be between $1.94B and $1.99B.
For the full-year, Palo Alto Networks (PANW) expects adjusted earnings per share between $3.37 and $3.44 per share and slightly raised its revenue forecast, as it now sees sales between $6.85B and $6.91B. It previously forecast full-year sales of $6.85B and $6.9B.
BTIG Research analyst Gray Powell, who has a buy rating and $240 price target on Palo Alto Networks (PANW), noted that investor sentiment was "somewhat muted" going into the results, helping to explain the sharp positive reaction. 
"All in, we thought it was a strong quarter in what has proven to be a volatile earnings season," Powell wrote in a note to clients, adding that he was "particularly pleased" to see the continued shift to the company's cloud-based next-generation security portfolio.
Last week, Loop Capital upgraded Palo Alto Networks (PANW), noting "signs of accelerating momentum driven by an increase in large deal activity."