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Factors to Note Ahead of CrowdStrike's (CRWD) Q4 Earnings

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CrowdStrike Holdings (CRWD - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Mar 7.

The company anticipates fourth-quarter fiscal 2023 revenues in the range of $619.1-$628.2 million. The Zacks Consensus Estimate for the same is pegged at $624.7 million, indicating an improvement of 44.9% from the year-ago quarter.

CrowdStrike expects non-GAAP earnings between 42 cents and 45 cents per share. The Zacks Consensus Estimate for non-GAAP earnings stands at 43 cents per share, suggesting an improvement of 43.3% year over year.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 34.6%.

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

CrowdStrike Price and EPS Surprise CrowdStrike Price and EPS Surprise

CrowdStrike price-eps-surprise | CrowdStrike Quote

Factors to Consider

CrowdStrike’s fourth-quarter results are likely to reflect the benefits of the continued solid demand for its products, given the healthy environment of the global security market. The increasing number of people logging into employers' networks has triggered a greater need for security and might have spurred the demand for CRWD’s products in the fourth quarter. A strong pipeline of deals indicates the same.

Stellar revenue growth in subscriptions might have contributed significantly to the fourth quarter’s top line. Further, the increasing number of net new subscription customers may have acted as a tailwind.

Additionally, the acquisition of Reposify is likely to have strengthened CrowdStrike’s capabilities and may have attracted new customers during the quarter under review.

Moreover, CrowdStrike’s collaboration with Amazon Web Services (“AWS”) is an upside, benefiting the company from its products’ availability on the AWS platform. The expansion in the volume of transactions through Amazon’s AWS Marketplace, growth in co-selling opportunities with AWS salesforce and the uptake of AWS service integrations are likely to have contributed to CRWD’s earnings in the to-be-reported quarter.

However, elevated expenses for enhancing sales and marketing capabilities and increased investments in research and development are likely to have weighed on CrowdStrike’s fourth-quarter bottom line.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for CrowdStrike this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though CrowdStrike currently holds a Zacks Rank of 3, it has an Earnings ESP of -2.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Ulta Beauty (ULTA - Free Report) , Golar LNG Limited (GLNG - Free Report) and Arhaus (ARHS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.

Ulta Beauty carries a Zacks Rank #2 and has an Earnings ESP of +8.53%. The company is slated to report fourth-quarter fiscal 2023 results on Mar 9. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 26.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ulta Beauty’s fourth-quarter earnings stands at $5.53 per share, implying a year-over-year increase of 2.2%. It is estimated to report revenues of $3.01 billion, which suggests an increase of 10.3% from the year-ago quarter.

Golar LNG carries a Zacks Rank #2 and has an Earnings ESP of +2.38%. The company is expected to report fourth-quarter 2022 results on Mar 9. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 73.3%.

The Zacks Consensus Estimate for GLNG’s fourth-quarter earnings is pegged at 42 cents per share, indicating a year-over-year increase of 90.9%. The consensus mark for revenues stands at $69 million, suggesting a year-over-year decrease of 40.2%.

Arhaus is slated to report fourth-quarter 2022 results on Mar 9. The company has a Zacks Rank #2 and an Earnings ESP of +1.69% at present. ARHS’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 112%.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 20 cents per share, suggesting an increase of 42.9% from the year-ago quarter’s earnings of 14 cents. Arhaus’ quarterly revenues are estimated to increase 48.7% year over year to $354.3 million.

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