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What's in the Offing for CrowdStrike (CRWD) This Earnings Season?

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CrowdStrike Holdings (CRWD - Free Report) is slated to release first-quarter fiscal 2022 results on Jun 3.

For the fiscal first quarter, the company estimates revenues in the $287.8-$292.1 million band. The Zacks Consensus Estimate for quarterly revenues is pegged at $292.2 million, indicating a 64.1% year-over-year surge.

For the bottom line, management expects to report between 5 cents and 6 cents per share. The Zacks Consensus Estimate for the same stands at 6 cents, suggesting a 200% year-over-year surge.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 192.6%.

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

Factors in Play

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

Stellar revenue growth in subscription is likely to have been the primary driver of the top line during the quarter under review. Increasing number of net new subscription customers might have been a key tailwind as well.

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 is triggering a greater need for security. This trend might have spurred demand for CrowdStrike’s products during the fiscal first quarter. A strong pipeline of deals is an indicator of this.

In addition, investment in collaboration with Amazon's (AMZN - Free Report) AWS is an upside. The company is benefiting from its products’ availability on the AWS platform. Expansion in the volume of transactions through the AWS Marketplace, growth in the co-selling opportunities with AWS salesforce, and the uptake of AWS service integrations are likely to have boosted the company’s earnings performance during the period in discussion.

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:

Chewy Inc. (CHWY - Free Report) has an Earnings ESP of +133.34 and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Signet Jewelers Ltd. (SIG - Free Report) has an Earnings ESP of +2.84% and holds a Zacks Rank of 2, at present.

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