CrowdStrike Holdings (CRWD) stock is trading higher Wednesday after the cybersecurity company beat top- and bottom-line expectations for its fiscal first quarter and lifted its full-year forecast.
In the three months ended April 30, CrowdStrike's revenue increased 33% year-over-year to $921 million and its earnings per share (EPS) were up 63.2% from the year prior to 93 cents. CRWD also said its free cash flow jumped 41.8% year-over-year to $322.5 million, representing 35% of revenue.
"CrowdStrike started the fiscal year from a position of momentum and exceptional strength," thanks to impressive increases in annual recurring revenue, CrowdStrike co-founder and CEO George Kurtz said in a statement. The company's Falcon platform "creates a wide competitive moat and uniquely enables CrowdStrike to solve the industry's biggest cybersecurity, IT and data problems. Customers of all sizes are standardizing on the Falcon platform to achieve better security outcomes and lower their total cost of ownership."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
CRWD's results easily beat analysts' expectations. According to Yahoo Finance, Wall Street was anticipating revenue of $905 million and earnings of 89 cents per share.
For the second quarter, CrowdStrike said it expects revenue in the range of $958.3 million to $961.2 million and EPS in the range of 98 cents to 99 cents. The guidance is ahead of analysts' average estimates for revenue of $954.4 million and earnings of 91 cents per share.
As a result of the strong start to its fiscal year, CrowdStrike raised its full-year outlook. The company now anticipates revenue of $3.98 billion to $4.01 billion and earnings per share to arrive between $3.93 to $4.03, up from its previous guidance of revenue in the range of $3.92 billion to $3.99 billion and earnings in the range of $3.77 per share to $3.97 per share.
Is CrowdStrike stock a buy, sell or hold?
Today's earnings-related upside is just more of the same for the cybersecurity stock. Indeed, CrowdStrike has been a big winner so far in 2024, rising more than 25% for the year to date as of this writing.
Analysts think there is plenty of upside from here too. According to S&P Global Market Intelligence, the consensus analyst target price for CRWD stock is $397.36, representing implied upside of more than 20% to current levels. Meanwhile, the consensus recommendation is a Strong Buy.
Speaking for the bulls is Jefferies analyst Joseph Gallo, who maintained a Buy rating on the tech stock after earnings. The company is well-positioned to benefit from rising demand for all things generative artificial intelligence (GenAI), Gallo says, adding that there are "many levers for CRWD to derive revenue from the GenAI lifecycle via its data loss protection product, data organization and governance (via Flow), and increase in cloud workloads driving cloud security."
Related Content
-
Should You Do A Roth IRA Conversion? Nine Things to ConsiderThe Tax Letter Thinking of converting a traditional IRA to a Roth IRA? The Kiplinger Tax Letter Editor highlights nine factors you should consider before making a move.
-
33 Stocks That Could Rally 50% or More This YearAnalysts say these S&P 500 stocks have at least 50% price upside over the next year or so.
-
33 Stocks That Could Rally 50% or More This Year
Analysts say these S&P 500 stocks have at least 50% price upside over the next year or so.
-
Stock Market Today: Dow Drops 971 Points as Powell Pressure Ramps UpPresident Trump is increasing his attacks against Jerome Powell, insisting the Fed chair cut interest rates.
-
When Should You Hand Over the Keys — to Your Investments?The secret to retirement planning? "The best time to hand over the keys is before you’ve realized you need to hand over the keys."
-
Going to College? How to Navigate the Financial PlanningCollege decisions this year seem even more complex than usual, including determining whether a school is a 'financial fit.' Here's how to find your way.
-
Financial Steps After a Loved One's Alzheimer's DiagnosisIt's important to move fast on legal safeguards, estate planning and more while your loved one still has the capacity to make decisions.
-
How Soon Can You Walk Away After Selling Your Business?You may earn more money from the sale of your business if you stay to help with the transition to new management. The question is, do you need to?
-
Two Don'ts and Four Dos During Trump's Trade WarThe financial rules have changed now that tariffs have disrupted the markets and created economic uncertainty. What can you do? (And what shouldn't you do?)
-
I'm Single, With No Kids: Why Do I Need an Estate Plan?Unless you have a plan in place, guess who might be making all the decisions about your prized possessions, or even your health care: a court.
