Cybersecurity company CrowdStrike (NASDAQ:CRWD) will be reporting results tomorrow after the bell. Here’s what you need to know.
CrowdStrike beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $963.9 million, up 31.7% year on year. The quarter itself was solid, with ARR (annual recurring revenue), revenue, and operating profit all beating. Guidance was underwhelming, though, as full-year revenue was lowered and revenue guidance for next quarter missed Wall Street’s estimates.
Is CrowdStrike a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CrowdStrike’s revenue to grow 25.1% year on year to $983.1 million, slowing from the 35.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.81 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CrowdStrike has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.3% on average.
Looking at CrowdStrike’s peers in the cybersecurity segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Varonis delivered year-on-year revenue growth of 21.1%, beating analysts’ expectations by 4.7%, and Qualys reported revenues up 8.4%, topping estimates by 2.1%. Varonis traded down 10.7% following the results while Qualys was up 23.9%.
Read our full analysis of Varonis’s results here and Qualys’s results here.
There has been positive sentiment among investors in the cybersecurity segment, with share prices up 18.1% on average over the last month. CrowdStrike is up 23.6% during the same time and is heading into earnings with an average analyst price target of $339.07 (compared to the current share price of $372.48).
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