Cybersecurity firm CrowdStrike Holdings (CRWD) has reported third-quarter financial results that beat Wall Street estimates across the board.
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The Texas-based company reported third-quarter earnings per share (EPS) of $0.93, which surpassed the consensus forecast of analysts that called for $0.81. Revenue of $1.01 billion topped the $983 million that had been expected on Wall Street.
The strong results come after CrowdStrike’s software triggered a global technology outage this past summer that impacted consumers and disrupted businesses worldwide. The company faces lawsuits over the IT outage that spread to many different industries.
Soft Guidance
Despite the strong Q3 results, CRWD stock was down 4% in after hours trading following the print. The decline is likely due to the fact that CrowdStrike provided tepid forward guidance for the current fourth quarter of 2024.
The company said that it expects fourth-quarter earnings of $0.84 to $0.86 a share. The midpoint of that range is below Wall Street’s expectations for $0.86. CrowdStrike raised its full-year 2024 earnings forecast to between $3.74 and $3.76 a share, which is up from previous guidance of $3.61 to $3.65.
CRWD stock has gained 43% this year despite the IT outage this past summer.
Is CRWD Stock a Buy?
CrowdStrike stock has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 34 Buy and six Hold recommendations issued in the last three months. The average CRWD price target of $341.50 implies 6.26% downside risk from current levels.
