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Time to Buy the Surge in CrowdStrike's (CRWD) Stock After Earnings?
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Cyber security provider CrowdStrike (CRWD - Free Report) saw its stock spike +12% today after beating its first quarter top and bottom-line expectations Tuesday evening.
Investors may be wondering if it’s still time to get in on the rally with CrowdStrike’s stock soaring +33% year to date and now up more than +100% in the last year to largely outperform the broader indexes and many on its cyber security peer’s including Gen Digital’s (GEN - Free Report) +40%.
Image Source: Zacks Investment Research
Q1 Review
As a leader in next-generation endpoint protection, CrowdStrike posted Q1 EPS of $0.93 which beat estimates by 4% and soared 63% from $0.57 a share in the comparative quarter. The profit increase was driven by Q1 sales of $921.04 million coming in 2% better than expected while climbing 33% year over year.
Image Source: Zacks Investment Research
Other highlights for Q1 included CrowStrike recording records in subscription growth margins at 80% and free cash flow at $322 million. Boldly, Co-founder and CEO George Kurtz stated CrowdStrike is the only cybersecurity vendor of scale delivering this level of growth and profitability. Notably, this bolsters CrowdStrike's positional power even over Gen Digital’s iconic Norton Anti-Virus, Internet Security, and System Works brands.
Image Source: Zacks Investment Research
AI Leader
Artificial Intelligence has helped boost CrowdStrike’s expansion with the company revealing that its AI native platform wins at scale in every geography, market segment, and solution area. To that point, CrowdStrike’s popular Falcon platform has addressed the need to consolidate cybersecurity at scale.
Impressive Guidance
Fueling the rally in CRWD, CrowdStrike expects Q2 sales at a range of $958.3 million-$961.2 million which came in above the current Zacks Consensus of $956.18 million or 30% growth (Current Qtr below). CrowStrike now expects total sales for its current fiscal 2025 to be over $3.97 billion to $4.1 billion which would also exceed expectations (Current Year).
Image Source: Zacks Investment Research
Second quarter non-GAAP net income was guided at $245.7-$247.8 million or EPS of $0.98-$0.99 which edged estimates of $0.90 a share or 21% growth.
Even better, the company now expects full-year non-GAAP net income for FY25 in the range of $985.6 million-$1.01 billion or $3.93-$4.03 per share and above the Current Zacks EPS Consensus of $3.90 or 26% growth.
Image Source: Zacks Investment Research
Bottom Line
CrowdStrike’s stock currently sports a Zacks Rank #2 (Buy) as earnings estimate revisions have remained higher for its current FY25 and FY26. Furthermore, EPS estimates could trend higher in the coming weeks following CrowdStrike’s strong Q1 results and elevated guidance.
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Time to Buy the Surge in CrowdStrike's (CRWD) Stock After Earnings?
Cyber security provider CrowdStrike (CRWD - Free Report) saw its stock spike +12% today after beating its first quarter top and bottom-line expectations Tuesday evening.
Investors may be wondering if it’s still time to get in on the rally with CrowdStrike’s stock soaring +33% year to date and now up more than +100% in the last year to largely outperform the broader indexes and many on its cyber security peer’s including Gen Digital’s (GEN - Free Report) +40%.
Image Source: Zacks Investment Research
Q1 Review
As a leader in next-generation endpoint protection, CrowdStrike posted Q1 EPS of $0.93 which beat estimates by 4% and soared 63% from $0.57 a share in the comparative quarter. The profit increase was driven by Q1 sales of $921.04 million coming in 2% better than expected while climbing 33% year over year.
Image Source: Zacks Investment Research
Other highlights for Q1 included CrowStrike recording records in subscription growth margins at 80% and free cash flow at $322 million. Boldly, Co-founder and CEO George Kurtz stated CrowdStrike is the only cybersecurity vendor of scale delivering this level of growth and profitability. Notably, this bolsters CrowdStrike's positional power even over Gen Digital’s iconic Norton Anti-Virus, Internet Security, and System Works brands.
Image Source: Zacks Investment Research
AI Leader
Artificial Intelligence has helped boost CrowdStrike’s expansion with the company revealing that its AI native platform wins at scale in every geography, market segment, and solution area. To that point, CrowdStrike’s popular Falcon platform has addressed the need to consolidate cybersecurity at scale.
Impressive Guidance
Fueling the rally in CRWD, CrowdStrike expects Q2 sales at a range of $958.3 million-$961.2 million which came in above the current Zacks Consensus of $956.18 million or 30% growth (Current Qtr below). CrowStrike now expects total sales for its current fiscal 2025 to be over $3.97 billion to $4.1 billion which would also exceed expectations (Current Year).
Image Source: Zacks Investment Research
Second quarter non-GAAP net income was guided at $245.7-$247.8 million or EPS of $0.98-$0.99 which edged estimates of $0.90 a share or 21% growth.
Even better, the company now expects full-year non-GAAP net income for FY25 in the range of $985.6 million-$1.01 billion or $3.93-$4.03 per share and above the Current Zacks EPS Consensus of $3.90 or 26% growth.
Image Source: Zacks Investment Research
Bottom Line
CrowdStrike’s stock currently sports a Zacks Rank #2 (Buy) as earnings estimate revisions have remained higher for its current FY25 and FY26. Furthermore, EPS estimates could trend higher in the coming weeks following CrowdStrike’s strong Q1 results and elevated guidance.