CrowdStrike Holdings (NASDAQ:CRWD) is gearing up to announce its quarterly earnings on Tuesday, 2024-11-26. Here's a quick overview of what investors should know before the release.
Analysts are estimating that CrowdStrike Holdings will report an earnings per share (EPS) of $0.81.
The announcement from CrowdStrike Holdings is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Past Earnings Performance
In the previous earnings release, the company beat EPS by $0.07, leading to a 2.83% increase in the share price the following trading session.
Here's a look at CrowdStrike Holdings's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.97 | 0.89 | 0.82 | 0.74 |
| EPS Actual | 1.04 | 0.93 | 0.95 | 0.82 |
| Price Change % | 3.0% | 12.0% | 11.0% | 10.0% |
Market Performance of CrowdStrike Holdings's Stock
Shares of CrowdStrike Holdings were trading at $372.26 as of November 22. Over the last 52-week period, shares are up 75.3%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Observations about CrowdStrike Holdings
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on CrowdStrike Holdings.
CrowdStrike Holdings has received a total of 39 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $337.64, the consensus suggests a potential 9.3% downside.
Comparing Ratings with Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Fortinet, Palo Alto Networks and Zscaler, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Fortinet, with an average 1-year price target of $93.16, suggesting a potential 74.97% downside.
- The consensus outlook from analysts is an Outperform trajectory for Palo Alto Networks, with an average 1-year price target of $421.68, indicating a potential 13.28% upside.
- As per analysts' assessments, Zscaler is favoring an Outperform trajectory, with an average 1-year price target of $215.46, suggesting a potential 42.12% downside.
Key Findings: Peer Analysis Summary
The peer analysis summary presents essential metrics for Fortinet, Palo Alto Networks and Zscaler, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| CrowdStrike Holdings | Outperform | 31.74% | $726.47M | 1.75% |
| Fortinet | Neutral | 13.00% | $1.24B | 90.26% |
| Palo Alto Networks | Outperform | 13.88% | $1.58B | 6.33% |
| Zscaler | Outperform | 30.30% | $462.66M | -1.26% |
Key Takeaway:
CrowdStrike Holdings ranks at the top for Revenue Growth and Gross Profit among its peers. It is at the bottom for Return on Equity. Overall, CrowdStrike Holdings is positioned favorably compared to its peers based on the provided metrics.
About CrowdStrike Holdings
CrowdStrike is a cloud-based cybersecurity company specializing in next-generation security verticals such as endpoint, cloud workload, identity, and security operations. CrowdStrike's primary offering is its Falcon platform that offers a proverbial single pane of glass for an enterprise to detect and respond to security threats attacking its IT infrastructure. The Texas-based firm was founded in 2011 and went public in 2019.
Unraveling the Financial Story of CrowdStrike Holdings
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining CrowdStrike Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 31.74% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Net Margin: CrowdStrike Holdings's net margin excels beyond industry benchmarks, reaching 4.88%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): CrowdStrike Holdings's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.75%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): CrowdStrike Holdings's ROA stands out, surpassing industry averages. With an impressive ROA of 0.67%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.28.
To track all earnings releases for CrowdStrike Holdings visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
