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CrowdStrike Holdings, Inc. (CRWD - Free Report) has fallen to a Zacks Rank #5 (Strong Sell) as the Zacks Consensus Estimate for Fiscal 2022 has slid. Revenue is still expected to jump 51% in Fiscal 2022.
CrowdStrike provides cloud-delivered endpoint and cloud workload protection. The CrowdStrike Falcon platform, which uses AI technology, protects customers against cyberattacks on endpoints on or off the network by offering visibility and protection across the enterprise.
Record Fiscal Fourth Quarter
On Mar 16, CrowdStrike reported its fourth quarter fiscal 2021 results and beat the Zacks Consensus by $0.04. Earnings were $0.13 versus the Zacks Consensus of $0.09.
It was a strong fourth quarter for the company with 70% net new subscription customer growth year-over-year and 77% year-over-year subscription revenue growth.
Annual Recurring Revenue (ARR) rose 75% year-over-year and grew to $1.05 billion as of Jan 31, 2021. Of that, $142.7 million was net new ARR added in the quarter, a new record.
CrowdStrike also ended the fiscal year with record subscription gross margin and record operating and free cash flow.
Non-GAAP subscription gross margin was 80%, compared to 77% in the fourth quarter of the prior year.
Cash and cash equivalents were $1.92 billion as of Jan 31, 2021.
Why Is CrowdStrike a Strong Sell?
With all this good news, and further bullishness at an April Investor's Day, why is CrowdStrike a Zacks Rank #5 (Strong Sell)?
The Zacks Rank is a short-term recommendation of 1 to 3 months that is based on revisions to analyst earnings estimates.
For fiscal 2022, 7 analysts have cut, and just 3 have raised estimates, in the last 60 days.
The Zacks Consensus Estimate for fiscal 2022 fell to $0.30, from $0.37, during that time.
That's still earnings growth of 11% as the company made $0.27 in fiscal 2021.
The Zacks Consensus Estimate for fiscal 2023 has also come down to $0.64 from the previous consensus of $0.80 in the last 2 months.
But it is the agreement among the analysts, with 7 of them cutting, which is what has pushed CrowdStrike to a Strong Sell.
Shares Fall Over 20%
CrowdStrike was one of the big winning stocks in 2020.
Shares are up 144% in the last year but have weakened in the last 3 months, falling 22.2% during that period.
There has been a reset in the stocks in the entire sector even though growth trajectories remain intact.
Investors might want to keep CrowdStrike on their wish list, especially if the shares weaken further.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Shutterstock
Bear of the Day: CrowdStrike (CRWD)
CrowdStrike Holdings, Inc. (CRWD - Free Report) has fallen to a Zacks Rank #5 (Strong Sell) as the Zacks Consensus Estimate for Fiscal 2022 has slid. Revenue is still expected to jump 51% in Fiscal 2022.
CrowdStrike provides cloud-delivered endpoint and cloud workload protection. The CrowdStrike Falcon platform, which uses AI technology, protects customers against cyberattacks on endpoints on or off the network by offering visibility and protection across the enterprise.
Record Fiscal Fourth Quarter
On Mar 16, CrowdStrike reported its fourth quarter fiscal 2021 results and beat the Zacks Consensus by $0.04. Earnings were $0.13 versus the Zacks Consensus of $0.09.
It was a strong fourth quarter for the company with 70% net new subscription customer growth year-over-year and 77% year-over-year subscription revenue growth.
Annual Recurring Revenue (ARR) rose 75% year-over-year and grew to $1.05 billion as of Jan 31, 2021. Of that, $142.7 million was net new ARR added in the quarter, a new record.
CrowdStrike also ended the fiscal year with record subscription gross margin and record operating and free cash flow.
Non-GAAP subscription gross margin was 80%, compared to 77% in the fourth quarter of the prior year.
Cash and cash equivalents were $1.92 billion as of Jan 31, 2021.
Why Is CrowdStrike a Strong Sell?
With all this good news, and further bullishness at an April Investor's Day, why is CrowdStrike a Zacks Rank #5 (Strong Sell)?
The Zacks Rank is a short-term recommendation of 1 to 3 months that is based on revisions to analyst earnings estimates.
For fiscal 2022, 7 analysts have cut, and just 3 have raised estimates, in the last 60 days.
The Zacks Consensus Estimate for fiscal 2022 fell to $0.30, from $0.37, during that time.
That's still earnings growth of 11% as the company made $0.27 in fiscal 2021.
The Zacks Consensus Estimate for fiscal 2023 has also come down to $0.64 from the previous consensus of $0.80 in the last 2 months.
But it is the agreement among the analysts, with 7 of them cutting, which is what has pushed CrowdStrike to a Strong Sell.
Shares Fall Over 20%
CrowdStrike was one of the big winning stocks in 2020.
Shares are up 144% in the last year but have weakened in the last 3 months, falling 22.2% during that period.
There has been a reset in the stocks in the entire sector even though growth trajectories remain intact.
Investors might want to keep CrowdStrike on their wish list, especially if the shares weaken further.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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