HomeMost PopularInvestingCrowdStrike Earnings Shock: Surprises in Store?

CrowdStrike Earnings Shock: Surprises in Store?

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The long-awaited report on the third-quarter fiscal 2024 earnings for CrowdStrike Holdings (CRWD) will be revealed after the closing bell on Nov 28.

Market analysts expect the company to generate revenues within the range of $775.4-$778 million, and the Zacks Consensus Estimate stands at $777.2 million, reflecting a substantial 33.8% rise from the previous year.

CrowdStrike anticipates non-GAAP earnings of about 74 cents per share, aligning with the Zacks Consensus Estimate. This figure indicates a whopping 85% surge from the non-GAAP earnings of 40 cents per share in the corresponding period of the previous year.

Irritatingly, CrowdStrike has surpassed the Zacks Consensus Estimate in each of the last four quarters, producing an average surprise of 20.1%.

What Might Happen Next?

A recap of the factors shaping up this announcement boldly illustrates the company’s potential to benefit from solid product demand in the global security market. With a staggering number of individuals accessing employers’ networks, the necessity of security has consequently surged, likely driving up demand for CRWD’s products in the fiscal third quarter. There is evident momentum with a strong pipeline of deals, indicating high potential.

The third-quarter results are also likely to showcase remarkable revenue growth in subscriptions, while an increase in net new subscription customers is expected.

Despite these bright prospects, there are annoying headwinds. Escalating expenses to enhance sales and marketing capabilities and amplified investments in research and development might have compromised the company’s bottom line in the third quarter.

Insider Info

The earnings tracking model doesn’t infallibly predict an earnings beat for CrowdStrike this season. Specifically, though CRWD currently holds a Zacks Rank #2, the Earnings ESP remains at 0.00%.

Bright Spots Elsewhere

Other companies such as Micron Technology (MU), Snowflake (SNOW), and Marvell Technology (MRVL) have established positions in the market, ready to unveil a promising earnings performance in their forthcoming releases.

Micron ranks at #3 with an Earnings ESP of +26.69%. Snowflake, standing at Zacks Rank #2, boasts an Earnings ESP of +67.33%. Lastly, Marvell is positioned at #3 with an Earnings ESP of +0.18%.

As we eagerly anticipate the upcoming earnings announcements, investors are advised to stay informed with the Zacks Earnings Calendar.

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Source: Zacks Investment Research

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