CrowdStrike (CRWD) recently reported earnings for its second quarter of Fiscal Year 2023. Adjusted earnings per share came in at $0.36, which beat analysts’ consensus estimate of $0.28 per CRWD share. In the past nine quarters, the company has beaten estimates nine times.
In addition, sales increased 58% year-over-year, with revenue hitting $535.2 million compared to $337.7 million. This was higher than the $516.4 million that analysts were looking for. This can be attributed to the company’s subscription revenue, which grew by 60% and made up the bulk of total revenue.
Furthermore, gross profits increased by 59.6%, which means that the company demonstrated operating leverage since it increased more than revenue. Indeed, the gross margin expanded from 73.2% to 73.7%.
Looking ahead, CrowdStrike raised its guidance for Fiscal Year 2023. Management expects revenue in the range of $2,223 – $2,232 million and adjusted earnings per share between $1.31 – $1.33.
Investor Sentiment for CRWD Stock is Currently Negative
The sentiment among TipRanks investors is currently negative. Out of the 729,068 portfolios tracked by TipRanks, 2.8% hold CRWD stock. In addition, the average portfolio weighting allocated towards CRWD among those who do have a position is 4.7%. This suggests that investors of the company are confident about its future.
However, in the last 30 days, 0.4% of those holding the stock decreased their positions. As a result, the stock’s sentiment is below the sector average, as demonstrated in the following image:
What is the Target Price for CRWD Stock?
CrowdStrike has a Strong Buy consensus rating based on 20 Buys assigned in the past three months. The average CRWD stock price target of $233.30 implies 20.7% upside potential.
Takeaway – CrowdStrike’s Business Remains Resilient Despite Macroeconomic Headwinds
CrowdStrike saw another strong quarter, as revenue increased substantially while adjusted earnings came in better than expected. Although many companies began struggling this year, CrowdStrike is not one of them. The company has demonstrated that it has a very resilient business. In addition, management expects CrowdStrike to continue performing well, as evidenced by its higher outlook for Fiscal Year 2023.
