Palo Alto Networks rises on strong Q1 results, guidance; announces $195M deal for Cider Security
Michael Vi

Palo Alto Networks (NASDAQ:PANW) shares rose nearly 5% in extended-hours trading on Thursday after the cybersecurity company issued strong first-quarter results and guidance and said it was buying a startup to add to its portfolio.
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.
The strong results led to gains for other cybersecurity companies, including Fortinet (FTNT), CyberArk (CYBR) and CheckPoint Software (CHKP), among others.
In addition to the results and guidance, Palo Alto Networks (PANW) said it had signed an agreement to acquire startup Cider Security for $195M in cash. Palo Alto added that it did not expect a "material impact" on the company's financials as a result of the deal.
Palo Alto Networks (PANW) is slated to host a conference call at 4:30 p.m. EST to discuss the results. 
Prior to earnings, investment firm KeyBanc Capital Markets said it was "uncertain about the [second-quarter] guide" and forecast "some softness" in the remaining performance obligations and implied bookings and backlog due to the weakening economy.