CrowdStrike (NASDAQ:CRWD)
On Tuesday, August 30, following the market close, CrowdStrike (NASDAQ:CRWD) is expected to release Q2 financial data. Consensus revenue projections are $516.44M (+52.9% Year on Year) and consensus earnings per share projections are $0.27 (+145.2% Year on Year).CRWD has consistently outperformed revenue and EPS forecasts over the past two years.
EPS predictions have been revised up 23 times in the past three months. There have been 18 increases and 4 decreases in revenue predictions. Because CRWD is the “primary beneficiary” of escalating secular trends in security, Morgan Stanley upgraded the stock to Overweight based on the sector’s ongoing momentum and the company’s good performance.
CRWD shares fell despite the company reporting solid Q1 earnings due to worries about the slight increase in annual recurring revenue. While BTIG praised CRWD’s long-term prospects, Morgan Stanley praised the company’s Q2 ARR outlook as being “far stronger.”
CRWD had previously forecasted Q2 non-GAAP EPS of $0.27 to $0.28 and revenue of $512.7 to $516.8 million. CRWD has strong growth potential, but investors should hold given its present fair pricing, according to SA contributor The Digital Trend.
Current Developments
Palo Alto Networks (NASDAQ:PANW) last week released good Q4 numbers and a forecast, driving up cybersecurity stocks like CRWD. Wedbush deemed the outcomes a significant indicator of progress for the industry.
According to reports, CRWD was in negotiations to pay $2 billion for one or more Israeli cybersecurity companies and was establishing an Israeli R&D center based on the acquisitions.
The Nasdaq computer and Nasdaq-100 technology sector indices outperformed CRWD shares over the past year, which had a 3.4% YTD decline.
CrowdStrike (NASDAQ:CRWD) Future Prospects
A sector with the potential for rapid expansion is cybersecurity. A catalyst is constantly present. Cyberattacks and breaches are frequent occurrences that are becoming expected throughout conflicts. This means that businesses, organizations, and governments must take precautions to defend themselves against both profit-driven crooks and state-sponsored attackers, as well as everything in between.
As an industry leader that is still going strong, CrowdStrike (NASDAQ:CRWD) might be looking to expand its capabilities through acquisitions. The question should be raised by an analyst on the results call if the company doesn’t make an announcement because the response might offer hints.
Featured Image: Megapixl @Andreistanescu
Author Jowi Kwasu 
