Crowdstrike Holdings Inc. (NASDAQ: CRWD) is expected to report its fiscal Q2 2022 financial results on August 31, 2021. The results are expected to show the solid demand witnessed for the company's security offerings amid the COVID-19 pandemic.
What to look for
It is expected that stellar growth in subscription revenue will contribute to its top line in the quarter. But, most importantly, the increase in net new subscriptions may have been a tailwind during the quarter.
With the growing numbers of people logging into company networks, the need for security has grown considerably, spurring demand for the company's security products. In addition, the company strengthened its capabilities with the recent Humio acquisitions, which in turn attracted more new customers.
Earnings: Stockearning’s Estimated EPS for fiscal Q2 2022 is a loss of 0.14 per share. Historical EPS Performance shows that the company has beat earnings estimates six times (66%) and missed estimates three times (33%) in the past 12 quarters. In the first quarter of fiscal 2022, the company reported earnings of -0.14 per share versus estimates of a loss of $0.15 per share.
Revenue: CrowdStrike is expected to report revenue ranging between $318.3 million and $324.4 million in Q2 2022. In Q1 2022, the company topped revenue estimates, posting $302.8 million, against analysts' estimates of $291.4 million. In addition, the company added around 1,524 net new subscribers in Q1. For full fiscal 2022, the company expects revenue to be between $1.347 billion and $1.366 billion.
Stock movement: Since the last earnings release, CrowdStrike stock has gained 30.7%. The share price has been UP 5 times over the previous nine quarters following the earnings release. Therefore, Historical price action suggests a 55% chance that the stock price will go UP after CrowdStrike releases earnings on Tuesday, August 31, 2021. According to Stockearning’s algorithm, the
predicted first-day move in stock price is 9% after earnings releases, and the predicted move on the seventh day is 15%.
What analysts are saying
BofA analyst Tal Liani has raised the firm's price target in CrowdStrike from $285 to $315 and maintained a "Buy" rating on the stock. The analyst said that the company would report solid Q2 2022 financial results, and it will gain a share market in the Endpoint Protection Platform segment as it expands to other security areas with its scalable next-generation, cloud-native endpoint platform.
Also, RBC Capital analyst Mathew Hedberg has raised the price target on CrowdStrike stock from $259 to $300 and maintains a "Buy" rating on the stock. Hedberg expects the company to deliver strong Q2 financial results and guidance, citing an encouraging round of checks. In addition, he expects the company to report broad-based demand and record pipelines across the SMB and enterprise segments.
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