CrowdStrike is expected to report strong year-over-year growth in both its revenue and profits on increased demand for its cybersecurity solutions amid rising threats during the third quarter.
The company is due to hand down its 3Q fiscal 2024 earnings report on Tuesday, November 28 after the market close.
The provider of cloud-based security software expects to report earnings per share (EPS) of $0.74 and revenue in the range of $775.4 million to $778 million.
This is in line with Wall Street estimates of EPS of $0.74 on revenue of $777.18 million and would represent growth of 33.8% and 85% respectively from the year-ago quarter.
Investors will also be on the lookout for any updates to the company’s full-year fiscal 2024 guidance.
CrowdStrike currently expects EPS in the range of $2.80 to $2.84 and revenue between $3.03 to $3.04 billion for the 12 months ending in January 2024, compared to the consensus analyst expectation of EPS of $2.82 on revenue of $3.04 billion.
Upside post-print may be limited: analysts
Analysts at Wedbush wrote in a note to clients that their channel checks on CrowdStrike ahead of its 3Q earnings have been positive.
But, they noted that with the stock up about 40% since its last earnings report, the potential upside post-print is in question.
“The likelihood of the annual recurring revenue (ARR) number coming in in-line to slightly better than buyside expectations leads us to believe that downside risk is limited, and with comparisons getting easier for the next few quarters, investor sentiment is likely to tilt positive,” they wrote.
“However, based on what the stock is pricing in, and the stock move in the last three months, we believe the upside post print might be limited.”
The analysts expect net new ARR in the range of $220 million to $225 million, which implies growth of 11% to 15% year-over-year, and total ARR growing about 35% over the year-ago quarter.
Shares of CrowdStrike had added 1.6% at US$213.40 at noon on Tuesday. The stock has gained 106.6% in the year to date.
--Updated with analyst commentary, share price movement--
Contact the author at emily.jarvie@proactiveinvestors.com
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