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CrowdStrike (CRWD) to Report Q3 Earnings: What's in Store?

CrowdStrike Holdings CRWD is scheduled to report third-quarter fiscal 2023 results on Nov 29.

The company anticipates third-quarter fiscal 2023 revenues in the range of $569.1-$575.9 million. The Zacks Consensus Estimate for the same is pegged at $574.7 million, indicating an improvement of 51.2% from the year-ago quarter.

CrowdStrike expects non-GAAP earnings between 30 cents and 32 cents per share. The Zacks Consensus Estimate for non-GAAP earnings stands at 32 cents per share, suggesting an improvement of 88.2% year over year.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 45.8%.

Let’s see how things have shaped up before this announcement.

CrowdStrike Price and EPS Surprise
CrowdStrike Price and EPS Surprise

CrowdStrike price-eps-surprise | CrowdStrike Quote

Factors to Consider

CrowdStrike’s third-quarter results are likely to reflect the benefits of the continued solid demand for its products, given the healthy environment of the global security market. The increasing number of people logging into employers' networks has triggered a greater need for security and might have spurred demand for CRWD’s products in the third quarter. A strong pipeline of deals indicates the same.

The acquisitions of SecureCircle and Humio are likely to have strengthened CrowdStrike’s capabilities and may have attracted new customers during the quarter under review.

Moreover, CrowdStrike’s collaboration with Amazon Web Services (“AWS”) is an upside, benefiting the company from its products’ availability on the AWS platform. The expansion in the volume of transactions through Amazon’s AWS Marketplace, growth in co-selling opportunities with AWS salesforce and the uptake of AWS service integrations are likely to have contributed to CRWD’s earnings in the to-be-reported quarter.

Additionally, stellar revenue growth in subscriptions might have contributed significantly to the third quarter’s top line. Further, the increasing number of net new subscription customers may have acted as a tailwind.

However, elevated expenses for enhancing sales and marketing capabilities and increased investments in research and development are likely to have weighed on CrowdStrike’s third-quarter bottom line.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for CrowdStrike this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though CrowdStrike currently holds a Zacks Rank of 3, it has an Earnings ESP of -2.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Splunk SPLK, Intuit INTU and AutoZone AZO have the right combination of elements to post an earnings beat in their upcoming releases.

Splunk carries a Zacks Rank #3 and has an Earnings ESP of +9.43. The company is slated to report its third-quarter fiscal 2023 results on Nov 30. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 164.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Splunk’s third-quarter bottom line stands at earnings of 23 cents per share, indicating a robust improvement from the year-ago quarter’s loss of 37 cents per share. Revenues are estimated to grow 27.3% year over year to $845.9 million.

Intuit is slated to report first-quarter fiscal 2023 results on Nov 29. The company carries a Zacks Rank #3 and an Earnings ESP of +3.15% at present. INTU's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 13.8%.

The Zacks Consensus Estimate for Intuit’s quarterly earnings is pegged at $1.17 per share, suggesting a year-over-year decline of 23.5%. Its quarterly revenues are estimated to increase 24.4% year over year to $2.5 billion.

AutoZone carries a Zacks Rank #3 and an Earnings ESP of +2.91%. The company is slated to report first-quarter fiscal 2023 results on Dec 6. AZO's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.6%.

For the first quarter, the Zacks Consensus Estimate for AutoZone’s earnings is pegged at $24.82 per share, indicating a 3.4% year-over-year decrease. Revenues are expected to grow 4.2% to $3.82 billion.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Intuit Inc. (INTU) : Free Stock Analysis Report

AutoZone, Inc. (AZO) : Free Stock Analysis Report

Splunk Inc. (SPLK) : Free Stock Analysis Report

CrowdStrike (CRWD) : Free Stock Analysis Report

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