CrowdStrike Q2 earnings on deck: What to expect

CrowdStrike (NASDAQ:CRWD [https://seekingalpha.com/symbol/CRWD]) is set to report second quarter results on Wednesday, after markets close.

Wall Street expects the cybersecurity solutions company to post EPS of $0.83, implying a fall of over 20%, while revenue is expected to rise 19% to $1.15 billion during the quarter.

The company, which suffered from a major outage last year that crippled institutions including airlines, banks, and hospitals for hours, in June announced revenue and guidance that missed expectations, leading to a mixed reaction in the Wall Street community.

Seeking Alpha analyst Ahan Vashi said CrowdStrike faces many near-term headwinds, including slowing revenue growth, restructuring costs, and temporary subscription revenue impacts from its Customer Choice Program (CCP). CCP is an incentive program aimed at retaining customers after the outage.

However, Vashi added that “CrowdStrike Falcon remains a leading cybersecurity platform that should continue to grow at a healthy clip in the upcoming years and potentially decades.”

Meanwhile, Wedbush analysts said the company remains incrementally well-positioned to capitalize on the AI Revolution with more module add-ons within its core verticals with continued adoption of data protection and Charlotte AI, which continues to see strong deal flow.

Seeking Alpha analysts and Seeking Alpha’s Quant ratings are cautious and rate the stock a Hold, while Wall Street considers it a Buy.

Over the last two years, CrowdStrike has beaten EPS estimates [https://seekingalpha.com/symbol/CRWD/earnings/eps-surprise-summary] 100% of the time and has beaten revenue estimates 88% of the time.

Over the last three months, EPS estimates have seen 30 upward revisions [https://seekingalpha.com/symbol/CRWD/earnings/revisions], compared to 13 downward revisions. Revenue estimates have been revised upwards three times versus 36 downward moves.

The company, which offers cloud-based security solutions to businesses, has gained 24% so far this year, outperforming the over 9% gain in the broader S&P 500 Index.

MORE ON CROWDSTRIKE

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