Market News

CrowdStrike (NYSE:CRWD) Q3 Earnings Preview: What’s in Store?

Story Highlights

CrowdStrike is set to release its third-quarter results on Tuesday. While the company is expected to benefit from continued demand for cybersecurity solutions, insiders and hedge funds are bearish on the stock.

Cybersecurity company CrowdStrike (NASDAQ:CRWD) is scheduled to announce its third-quarter Fiscal 2023 results after the market closes on November 29. The company is expected to maintain its earnings beat streak in Q3 as well.

Currently, the Street expects CrowdStrike to post a profit of $0.32 per share in Q3, nearly 88% higher than the prior-year period figure of $0.17 per share. Meanwhile, revenue is pegged at $574.9 million, representing year-over-year growth of nearly 50%.

Since cyber threats and ransomware continue to be key concerns for the companies, demand for CrowdStrike’s products might have continued to remain high in Q3.

Further, based on strong performance in the first two quarters, management had raised full-year revenue guidance during the last earnings call. Also, CEO George Kurtz said that the company entered Q3 with a solid pipeline.

Analysts Lower Their Price Targets Ahead of Earnings 

Barclays analyst Saket Kalia lowered the price target on CrowdStrike to $180 from $225, while maintaining a Buy rating on the stock. The analyst expects the company to report net new annual recurring revenue (ARR) above $230 million.

Another analyst, Catharine Trebnick, from MKM Partners, has also cut the stock price target to $200 from $240 and maintained a Buy rating as well.

Is CRWD Stock a Buy, Sell, or Hold?

With 26 Buys and one Hold rating, CrowdStrike stock has a Strong Buy consensus rating. On TipRanks, the average CRWD stock price forecast of $229.15 implies 63.62% upside potential to current levels.

Ending Thoughts

Increasing ARR and continuous subscription growth, regardless of macro concerns, are key positive factors for the company. Further, management’s optimism about the company’s performance in Fiscal 2022 adds to the excitement.

Nevertheless, insiders and hedge funds are bearish on CRWD stock. Our data shows insiders sold CRWD stock worth $17.8M last quarter. Further, hedge funds sold 5.8M CRWD stock.

Disclosure 

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