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CrowdStrike (CRWD) Moves 6% Higher: Will This Strength Last?
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CrowdStrike Holdings (CRWD - Free Report) shares soared 6% in the last trading session to close at $208.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.2% loss over the past four weeks.
The upswing came after CrowdStrike reported impressive fourth-quarter fiscal 2021 results. Its non-GAAP earnings of 13 cents per share beat the Zacks Consensus Estimate by 44.44%. The bottom-line also marked a significant improvement from the year-ago quarter’s earnings per share of 2 cents. Moreover, CrowdStrike’s fiscal fourth-quarter revenues of $264.9 million surged 74% year over year and surpassed the consensus mark of $251 million.
Strong guidance for the first quarter of fiscal 2022, as well as that for the full year of fiscal 2022 created an optimism among investors.
Notably, CrowdStrike is benefiting from increased use of cybersecurity solutions, which is driving customer growth. Strong growth in its subscription business, as well as significant expansion in margins, made the stock attractive.
Moreover, an increasing number of people logging into employers' networks is triggering a greater need for security. This trend is spurring demand for CrowdStrike’s products. A strong pipeline of deals is an indicator of this.
Price and Consensus
This cloud-based security company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $264.37 million, up 48.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For CrowdStrike, the consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CRWD going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
CrowdStrike (CRWD) Moves 6% Higher: Will This Strength Last?
CrowdStrike Holdings (CRWD - Free Report) shares soared 6% in the last trading session to close at $208.03. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.2% loss over the past four weeks.
The upswing came after CrowdStrike reported impressive fourth-quarter fiscal 2021 results. Its non-GAAP earnings of 13 cents per share beat the Zacks Consensus Estimate by 44.44%. The bottom-line also marked a significant improvement from the year-ago quarter’s earnings per share of 2 cents. Moreover, CrowdStrike’s fiscal fourth-quarter revenues of $264.9 million surged 74% year over year and surpassed the consensus mark of $251 million.
Strong guidance for the first quarter of fiscal 2022, as well as that for the full year of fiscal 2022 created an optimism among investors.
Notably, CrowdStrike is benefiting from increased use of cybersecurity solutions, which is driving customer growth. Strong growth in its subscription business, as well as significant expansion in margins, made the stock attractive.
Moreover, an increasing number of people logging into employers' networks is triggering a greater need for security. This trend is spurring demand for CrowdStrike’s products. A strong pipeline of deals is an indicator of this.
Price and Consensus
This cloud-based security company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $264.37 million, up 48.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For CrowdStrike, the consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CRWD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>