CrowdStrike Holdings, Inc. (NASDAQ:CRWD) investors will be delighted, with the company turning in some strong numbers with its latest results. CrowdStrike Holdings beat expectations with revenues of US$481m arriving 3.3% ahead of forecasts. The company also reported a statutory loss of US$0.96, 3.7% smaller than was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the 19 analysts covering CrowdStrike Holdings are now predicting revenues of US$730.7m in 2021. If met, this would reflect a major 52% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 51% to US$0.47. Before this latest report, the consensus had been expecting revenues of US$684.2m and US$0.54 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in loss per share in particular.
Yet despite these upgrades, the analysts cut their price target 5.7% to US$72.90, implicitly signalling that the ongoing losses are likely to weigh negatively on CrowdStrike Holdings's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on CrowdStrike Holdings, with the most bullish analyst valuing it at US$109 and the most bearish at US$43.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. Next year brings more of the same, according to the analysts, with revenue forecast to grow 52%, in line with its 52% annual growth over the past three years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% next year. So although CrowdStrike Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for CrowdStrike Holdings that you should be aware of.
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