Shares of cybersecurity firm CrowdStrike (NASDAQ:CRWD) fell in today’s trading as investors await its Q1 earnings results on June 4 after the market closes. Analysts are expecting earnings per share to come in at $0.90 on revenue of $904.8 million. This equates to 57.9% and 30.6% year-over-year increases, respectively, according to TipRanks’ data.
This is ideal, as earnings per share should grow faster than revenue since this demonstrates a high degree of operating and financial leverage in the business. In addition, it’s worth noting that CrowdStrike has beaten earnings estimates every quarter since September 2020.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 12.04% move in either direction.
Is CrowdStrike a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on CRWD stock based on 36 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 99% rally in its share price over the past year, the average CRWD price target of $401.19 per share implies 31.11% upside potential.
