CrowdStrike (CRWD) to Post Q2 Earnings: What's in the Offing?

CrowdStrike Holdings CRWD is slated to release second-quarter fiscal 2021 results on Sep 2.

For the fiscal second quarter, the company estimates revenues in the $185.8-$190.3 million band. The Zacks Consensus Estimate for quarterly revenues is pegged at $188.6 million, indicating a 74.5% year-over-year surge.

For the bottom line, management expects to report between 2 cents of loss per share and a break-even. The Zacks Consensus Estimate for the same stands at a loss of a penny, narrower than the loss of 18 cents per share reported in the year-ago quarter.

In the last reported quarter, the company had reported adjusted earnings of 2 cents per share compared with the 55 cents loss per share posted in the year-ago quarter. Further, revenues soared 85.3% year over year to $178.1 million.

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

Factors at Play

CrowdStrike’s quarterly results are expected to reflect benefits from continued solid demand for its products, given the healthy environment of the global security market.

CrowdStrike Holdings Inc. Price and Consensus

CrowdStrike Holdings Inc. Price and Consensus

CrowdStrike Holdings Inc. price-consensus-chart | CrowdStrike Holdings Inc. Quote

Also, a huge global workforce is working remotely, in an effort to contain the spread of coronavirus. However, an increasing number of people logging into employers' networks has been triggering a greater need for security. This trend might have had spurred demand for CrowdStrike’s products in the fiscal second quarter.

Furthermore, CrowdStrike’s quarterly results are likely to reflect robust growth in subscription revenues. Increasing number of net new subscription customers might have been a key tailwind as well.

The company is anticipated to have gained from the growing strength in subscription customers, who are frequently adopting four or more cloud modules. CrowdStrike’s cloud-native Falcon platform is a major driver.

In addition, investment in the collaboration with Amazon' AWS is an upside. The company is benefiting from its product availability on the AWS platform. Expansion in volume of transactions through the AWS Marketplace, growth in the co-selling opportunities with AWS salesforce, and the uptake of AWS service integrations are expected to have boosted the company’s earnings performance this time around.

What Our Model Says

Our proven model does not predict an earnings beat for CrowdStrike this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

CrowdStrike currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

Zscaler ZS has an Earnings ESP of +21.74% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ambarella AMBA has an Earnings ESP of +100.00% and carries a Zacks Rank of 3, at present.

Nutanix NTNX has an Earnings ESP of +5.71% and carries a Zacks Rank of 3, currently.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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