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CrowdStrike (CRWD) to Post Q1 Earnings: What's in the Cards?

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CrowdStrike Holdings (CRWD - Free Report) is slated to release first-quarter fiscal 2021 results on Jun 2.

For the fiscal first quarter, the company estimates revenues in the $164.3-$167.6 million band. The Zacks Consensus Estimate for the metric is pegged at $165.9 million, indicating a 72.7% year-over-year surge.

Management expects non-GAAP loss per share within 6-7 cents. The Zacks Consensus Estimate for the same stands at a loss of 6 cents, narrower than the loss of 47 cents per share reported in the year-ago quarter.

In the last reported quarter, the company’s non-GAAP loss per share was 2 cents, narrower than the 60 cents of loss in the fourth quarter of fiscal 2020. Further, revenues soared 89% year over year to $152.1 million.

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

Factors at Play

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

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 has been triggering a greater need for security. This trend might have had spurred demand for CrowdStrike’s products in the fiscal first quarter.

Furthermore, CrowdStrike’s quarterly results are likely to reflect robust growth in subscription revenues. Increasing number of net new subscription customers might have been a key tailwind as well.

The company is likely to have gained from the growing strength in subscription customers, who are frequently adopting four or more cloud modules. CrowdStrike’s cloud-native Falcon platform is a major driver.

In addition, investment in the collaboration with Amazon' AWS is an upside. The company is benefiting from its product availability on the AWS platform. Expansion in 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 this time around.

However, significant competition from the likes of Palo Alto Networks (PANW) is a big concern.

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:

Dropbox (DBX - Free Report) has an Earnings ESP of +3.48% and currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nutanix (NTNX - Free Report) has an Earnings ESP of +2.63% and flaunts a Zacks Rank 1, at present.

Fortinet (FTNT - Free Report) has an Earnings ESP of +0.87% and sports a Zacks Rank of 2 currently.

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Fortinet, Inc. (FTNT) - free report >>

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CrowdStrike Holdings Inc. (CRWD) - free report >>