CrowdStrike Q3 preview: Poised for another strong quarterly show?
CrowdStrike (CRWD) is scheduled to announce Q3 earnings results on Tuesday, November 29th, after market close.
The Austin-based cybersecurity company's earnings update will come less than two weeks after competitor Palo Alto Networks (PANW) posted a big earnings beat that prompted an over 10% post-earnings pop.
CrowdStrike (CRWD) had a strong Q2 too, with subscription revenue up 60% and net new ARR reaching a record $218M with accelerating Y/Y growth. The consensus rating on CrowdStrike remains a Strong Buy, according to a Seeking Alpha survey.
The consensus EPS Estimate is $0.32 (+88.2% Y/Y) and the consensus Revenue Estimate is $575.12M (+51.3% Y/Y).
Ahead of the results, Morgan Stanley "pounded the table" on the cybersecurity space, highlighting opportunity in both CrowdStrike and Palo Alto.
"The biggest estimate cuts in [the third-quarter] were from smaller companies selling predominantly point products, in our view," the analysts wrote. "This aligns with our general preference for leaning into consolidators, most of which are reporting off-calendar [such as] Palo Alto Networks (PANW) and CrowdStrike (CRWD)."
Wedbush Securities too gave a "clear green light" for cybersecurity companies going into third-quarter earnings, with analyst Dan Ives noting that checks for the September quarter were "strong" as deal flow continued to hold up despite the uncertain macro economy.
An observed focus on moving to zero-trust architecture will also likely "disproportionately" benefit companies such as CrowdStrike (NASDAQ:CRWD) amid increased federal spending and the continued push to the cloud, according to Ives.
Over the last 3 months, EPS estimates have seen 25 upward revisions and 1 downward. Revenue estimates have seen 20 upward revisions and 1 downward.
Over the last 2 years, CRWD has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.