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Factors to Note Ahead of CrowdStrike's (CRWD) Q1 Earnings

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CrowdStrike Holdings CRWD is slated to report first-quarter fiscal 2023 results on Jun 2.

The company anticipates first-quarter fiscal 2023 revenues in the range of $458.9 million-$465.4 million. The Zacks Consensus Estimate for the same is pegged at $464.8 million, indicating an improvement of 53.5% from the year-ago quarter.

CrowdStrike expects non-GAAP earnings between 22 cents and 24 cents per share. The Zacks Consensus Estimate for non-GAAP earnings stands at 23 cents per share, suggesting an improvement of 130% year over year.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 52.2%.

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

CrowdStrike Price and EPS Surprise

CrowdStrike Price and EPS Surprise
CrowdStrike Price and EPS Surprise

CrowdStrike price-eps-surprise | CrowdStrike Quote

Factors to Consider

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

The increasing number of people logging into employers' networks has triggered a greater need for security and might have spurred demand for CrowdStrike’s products in the first quarter. A strong pipeline of deals indicates the same.

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

Moreover, CrowdStrike’s collaboration with Amazon’s AMZN 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.

However, elevated expenses for enhancing sales and marketing capabilities and increased investments in research and development are likely to have weighed on CrowdStrike’s first-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 0.00%. 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, Commercial Metals CMC and The Kroger Company KR have the right combination of elements to post an earnings beat in their upcoming releases.

Commercial Metals carries a Zacks Rank #2 and has an Earnings ESP of +8.63%. The company is scheduled to report third-quarter fiscal 2022 results on Jun 16. Commercial Metals’ earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 16%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CMC’s third-quarter earnings is pegged at $1.97 per share, indicating a year-over-year increase of 89.4%. The consensus mark for revenues stands at $2.34 billion, suggesting a year-over-year increase of 26.9%.

Kroger currently carries a Zacks Rank #2 and has an Earnings ESP of +2.95%. The company is anticipated to report its first-quarter fiscal 2023 results on Jun 16. Kroger’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 22.1%.

The Zacks Consensus Estimate for Kroger’s first-quarter earnings stands at $1.27 per share, implying a year-over-year increase of 6.7%. KR is estimated to report revenues of $43.22 billion, suggesting growth of 4.7% from the year-ago quarter.

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


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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
The Kroger Co. (KR) : Free Stock Analysis Report
 
Commercial Metals Company (CMC) : Free Stock Analysis Report
 
CrowdStrike (CRWD) : Free Stock Analysis Report
 
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