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

CrowdStrike Holdings CRWD is scheduled to report first-quarter fiscal 2024 results on May 31.

The company anticipates first-quarter fiscal 2024 revenues of $674.9-$678.2 million. The Zacks Consensus Estimate for the same is pegged at $674.3 million, indicating an improvement of 38.2% from the year-ago quarter's reported figure.

CrowdStrike expects non-GAAP earnings between 50 cents and 51 cents per share. The Zacks Consensus Estimate for non-GAAP earnings is pegged at 50 cents per share, suggesting an improvement of 61.3% year over year.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 24.4%.

CrowdStrike Price and EPS Surprise

 

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CrowdStrike price-eps-surprise | CrowdStrike Quote

Factors to Consider

CrowdStrike’s first-quarter fiscal 2024 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 the demand for CRWD’s products in the fiscal first quarter. A strong pipeline of deals indicates the same.

Stellar revenue growth in subscriptions 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.

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.

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

What Our Model States

Our proven model does not conclusively predict an earnings beat for CrowdStrike this season. 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. But that’s not the case here.

Although CrowdStrike carries a Zacks Rank #3 at present, 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, C3.ai AI, lululemon athletica LULU and Carnival CCL have the right combination of elements to post an earnings beat in the upcoming releases.

C3.ai has an Earnings ESP of +6.67% and carries a Zacks Rank #3 at present. The company is scheduled to report its fourth-quarter fiscal 2023 results on May 31. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 46.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AI’s fiscal fourth-quarter loss is pegged at 17 cents per share, indicating a 19.1% surge from the year-ago quarter’s loss per share of 21 cents. The consensus mark for revenues is $72.3 million, remaining flat year over year.

Currently, lululemon has an Earnings ESP of +0.24% and carries a Zacks Rank #3. The company is scheduled to report its first-quarter fiscal 2024 results on Jun 1. LULU’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 6.8%.

The Zacks Consensus Estimate for LULU’s fiscal first-quarter earnings is $1.97 per share, indicating a year-over-year surge of 33.1%. The company is estimated to report revenues of $1.92 billion, which suggests an increase of 19.3% from the year-ago quarter.

Carnival has an Earnings ESP of +0.42% and carries a Zacks Rank #3 at present. The company is likely to report second-quarter fiscal 2023 results on Jun 23. CCL’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being negative 102.9%.

The Zacks Consensus Estimate for CCL’s quarterly loss is pegged at 34 cents per share, suggesting a year-over-year increase of 79.3%. Its quarterly revenues are estimated to increase 100% year over year to $4. 80 billion.

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

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Carnival Corporation (CCL) : Free Stock Analysis Report

lululemon athletica inc. (LULU) : Free Stock Analysis Report

C3.ai, Inc. (AI) : Free Stock Analysis Report

CrowdStrike (CRWD) : Free Stock Analysis Report

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