CrowdStrike Q1 Financials: Will the Trend of Surpassing Forecasts Continue?

Stock Market Update for March 6th, 2024

Cybersecurity company CrowdStrike (CRWD:NSD) is set to announce its financial results for the first quarter of Fiscal 2024 on May 31. With a history of consistently surpassing Wall Street’s earnings estimates and experiencing market share gains, there is anticipation that CrowdStrike may continue its positive trend in Q1. However, analysts expect the growth rate to normalize as demand trends return to pre-COVID levels.

 

Positive Industry Trends:

The recent strong performance of peer company Zscaler (ZS:NSD) in its preliminary Q3 results is a positive sign for cybersecurity firms. The increased customer engagement in the cybersecurity space bodes well for companies like CrowdStrike, suggesting potential benefits in the industry.

 

CRWD Stock Price Performance:

CrowdStrike’s stock has seen significant gains, with a 28% increase in May 2023 and a remarkable 43% year-to-date rise. The improved operating environment has contributed to the stock’s upward trajectory. However, the volatility of CrowdStrike’s stock is worth considering due to the normalization of the company’s growth rate.

 

CRWD Stock-Analyst Expectations:

Analysts expect CrowdStrike to report total revenue of $677.39 million, falling within the management’s guidance range of $674.9 to $678.2 million. This represents a year-over-year growth of approximately 39%, indicating a slight moderation in the growth rate compared to the previous quarter’s increase of 48%.

In terms of earnings, Wall Street analysts project Q1 earnings of $0.51 per share, in line with management’s guidance of $0.50 to $0.51 per share. This estimate reflects a significant year-over-year growth rate of about 65%.

CRWD Ratings by Stock Target Advisor

Analyst Consensus and Price Target:

Analysts hold a bullish outlook on CrowdStrike ahead of its Q1 earnings announcement. Based on data from Stock Target Advisor, CRWD stock has a Strong Buy consensus rating, with 29 Buy recommendations and three Hold recommendations. The average price target of $168.52 suggests a potential upside of 9.34% from the current levels.

CRWD Ratings by Stock Target Advisor

The Takeaway:

As investors await CrowdStrike’s Q1 earnings report, there is optimism surrounding the company’s ability to outperform expectations, given its history of positive surprises and market share gains. However, analysts anticipate a moderation in the growth rate as demand trends normalize post-COVID. The positive performance of peer companies in the cybersecurity industry further supports the notion of an improved operating environment. It remains to be seen whether CrowdStrike will continue to impress investors and maintain its leadership in the next-gen endpoint market.

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