CrowdStrike Q3 Preview: Can Strong Deals Pipeline Drive Earnings Beat?
Portfolio Pulse from Neil Dennis
CrowdStrike (NASDAQ:CRWD) is expected to report strong quarterly earnings after the market close on Tuesday. The company's share price has seen significant growth, doubling over the year. CrowdStrike anticipates Q3 revenues between $775-$778 million, with Zacks Equity Research's consensus estimate at $777.2 million and expected EPS of 74 cents. Needham raised CrowdStrike's price target from $215 to $245, citing new products and a strong customer deal pipeline. However, Zacks noted potential negative impacts on the bottom line due to increased costs and investments, and does not predict a definitive earnings beat.
November 28, 2023 | 1:50 pm
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NEGATIVE IMPACT
Amazon's Web Services costs have been indicated by Zacks as a potential factor that could negatively affect CrowdStrike's bottom line in the Q3 earnings report.
While Amazon is not the main focus of the article, the mention of increased costs associated with Amazon Web Services as a potential drag on CrowdStrike's earnings could have a slight negative impact on AMZN's stock in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
CrowdStrike is anticipated to report strong Q3 earnings, with revenue estimates aligning with company projections and EPS expected to match Zacks' estimate. Needham's price target increase reflects confidence in the company's new products and deal pipeline.
The anticipation of strong earnings, based on both CrowdStrike's guidance and Zacks' consensus, alongside Needham's price target increase, suggests a positive short-term impact on CRWD's stock price. However, concerns about increased costs could temper gains.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100