Why did Palo Alto Networks stock go up today? Strong earnings, guidance boosts shares
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Palo Alto Networks (NASDAQ:PANW) shares jumped on Friday after the cyber security company posted third-quarter results that topped estimates and gave a forecast that lifted the entire sector.
Wedbush Securities analyst Dan Ives said Palo Alto Networks (PANW) results were a "blowout," adding that its cloud strategy is resonating well with its customers. 
"The shift to cloud is a massive tailwind for [Palo Alto Networks] as the company is in the right spot at the right time to benefit from this multi-year tidal wave of cyber security enterprise spending, despite macro jitters right now clouding the Street's view of the stock/sector," Ives wrote in a note to clients, while cutting the price target to $580 from $660 to reflect a lower earnings multiple.
Palo Alto Networks (PANW) shares jumped nearly 8.5% to $472.60 in late trading on Friday.
Other security stocks also gained on back of the report, including CrowdStrike (CRWD) and Fortinet (FTNT), which were up roughly 3% and 1%, respectively. 
Ives added that Palo Alto's (PANW) results are another "major positive data point" for the sector, noting that it is a few years into a massive growth cycle, citing the elevated threats and shift to the cloud.
Citi analyst Fatima Boolani raised her price target to $610 from $600 following the report, noting Palo Alto Networks' (PANW) results exceeded expectations. Boolani also pointed out that the rise in deal activity and transaction volumes highlight [Palo Alto's] wallet and platform consolidation momentum in a robust demand backdrop." 
For the period ending April 30, Palo Alto (PANW) said it earned $1.79 a share, excluding one-time items, on $1.39 billion in revenue, up almost 30% on a year-over-year basis. The company also said that billings, a key metric watched by investors, rose 40% from a year ago, to $1.8 billion.
In addition, Palo Alto (PANW) said it expects billings for the fourth-quarter to be between $2.32 billion and $2.35 billion, with revenue in a range of $1.53 billion to $1.55 billion.
The company also estimates that fourth-quarter earnings, excluding one-time items, will be between $2.26 and $2.29 a share, compared to estimates of $2.22 a share.
For the full-year Palo Alto (PANW) said it expects revenue to be between $5.48 billion and $5.5 billion, which would be year-over-year growth of around 29%, with billings expected to be between $7.106 billion and $7.136 billion.
Earlier this week, Palo Alto Networks (PANW) expanded its existing strategic alliance with Deloitte to offer managed security services to their shared U.S. customers.