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As you might know, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) just kicked off its latest quarterly results with some very strong numbers. It looks like a positive result overall, with revenues of US$232m beating forecasts by 8.4%. Statutory losses of US$0.11 per share were 8.4% smaller than the analysts expected, likely helped along by the higher revenues. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from CrowdStrike Holdings' 18 analysts is for revenues of US$1.19b in 2022, which would reflect a sizeable 57% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 52% to US$0.23. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.13b and losses of US$0.22 per share in 2022. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although there was a nice uplift to revenue, the consensus also made a to its losses per share forecasts.
It will come as a surprise to learn that the consensus price target rose 14% to US$180, with the analysts clearly more interested in growing revenue, even as losses intensify. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values CrowdStrike Holdings at US$200 per share, while the most bearish prices it at US$125. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of CrowdStrike Holdings'historical trends, as next year's 57% revenue growth is roughly in line with 57% annual revenue growth over the past three years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% next year. So it's pretty clear that CrowdStrike Holdings is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for CrowdStrike Holdings going out to 2024, and you can see them free on our platform here..
Even so, be aware that CrowdStrike Holdings is showing 3 warning signs in our investment analysis , you should know about...
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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