CrowdStrike (CRWD) to Post Q3 Earnings: What’s in the Cards?

CrowdStrike Holdings CRWD is slated to release third-quarter fiscal 2020 results on Dec 5.

For the fiscal third quarter, the company estimates revenues in the $117.1-$119.5 million band. The Zacks Consensus Estimate for the metric is pegged at $118.41 million.

Management expects non-GAAP loss per share within 12-11 cents. The Zacks Consensus Estimate for the same stands at a loss of 12 cents.

In the last reported quarter, the company’s non-GAAP loss per share was 18 cents, narrower than 69 cents of loss in the second quarter of fiscal 2019. Further, revenues soared 94% year over year to $101.8 million.

Let’s see, how things are shaping up for this announcement.

Factors at Play

CrowdStrike’s results for the fiscal third quarter are likely to reflect robust growth in subscription revenues. Increasing number of net new subscription customers might have been a key tailwind.

The company is likely 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.

Moreover, partnership wins from the likes of Dell DELL and SecureWorks are potent catalysts.

Further, investment in the collaboration with Amazon' AMZN 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.

However, significant competition from the likes of Palo Alto Networks PANW is a big concern.

CrowdStrike has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research