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CrowdStrike (CRWD) to Post Q3 Earnings: What's in the Cards?

Zacks Equity Research

CrowdStrike Holdings CRWD is slated to release third-quarter fiscal 2020 results on Dec 5.

For the fiscal third quarter, the company estimates revenues in the $117.1-$119.5 million band. The Zacks Consensus Estimate for the metric is pegged at $118.41 million.

Management expects non-GAAP loss per share within 12-11 cents. The Zacks Consensus Estimate for the same stands at a loss of 12 cents.

In the last reported quarter, the company’s non-GAAP loss per share was 18 cents, narrower than 69 cents of loss in the second quarter of fiscal 2019. Further, revenues soared 94% year over year to $101.8 million.

Let’s see, how things are shaping up for this announcement.

Factors at Play

CrowdStrike’s results for the fiscal third quarter are likely to reflect robust growth in subscription revenues. Increasing number of net new subscription customers might have been a key tailwind.

The company is likely to have gained from the growing strength in subscription customers, who are frequently adopting four or more cloud modules. CrowdStrike’s cloud-native Falcon platform is a major driver.

Moreover, partnership wins from the likes of Dell DELL and SecureWorks are potent catalysts.

Further, investment in the collaboration with Amazon' AMZN AWS is an upside. The company is benefiting from its product availability on the AWS platform. Expansion in volume of transactions through the AWS Marketplace, growth in the co-selling opportunities with AWS salesforce and the uptake of AWS service integrations are expected to have boosted the company’s earnings performance this time around.

However, significant competition from the likes of Palo Alto Networks PANW is a big concern.

CrowdStrike Holdings Inc. Price and EPS Surprise

CrowdStrike Holdings Inc. Price and EPS Surprise

CrowdStrike Holdings Inc. price-eps-surprise | CrowdStrike Holdings Inc. Quote

CrowdStrike has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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