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CrowdStrike Rose 10%, Good News in Its Q1 Results

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Today at 8:24 AM ET, CrowdStrike Holdings (NASDAQ:CRWD) stock rose 10.0% to $101.50 in the pre-market session following its results for the first quarter of fiscal 2021 on Tuesday. Notably, the first quarter ended on April 30. The company reported higher-than-expected first-quarter results. CrowdStrike’s sales and earnings numbers beat Wall Street’s consensus expectation. The company also provided strong second-quarter guidance.

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CrowdStrike’s earnings results for Q1 2021

CrowdStrike reported an adjusted quarterly net profit for the first time. In the first quarter, CrowdStrike reported an adjusted EPS of $0.02 compared to -$0.47 in the first quarter of fiscal 2020. The adjusted EPS beat analysts’ consensus estimate of -$0.06. CrowdStrike generated sales of $178.1 million—a growth of 85.3% from the first quarter of fiscal 2020. The company beat analysts’ consensus revenue estimate of $165.4 million.

According to a MarketWatch report, CrowdStrike CEO George Kurtz said, “The COVID-19 pandemic has inspired one of the most heightened threat environments we have ever seen as millions of people have moved to work-from-home environments and hackers have sought to take advantage of that disruption.” The report also said, “He expects working-from-home to become a long-term trend regardless as companies are prompted to speed up their digital transformations.”

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In the first quarter, subscription sales rose 88.7% YoY (year-over-year) to $162.2 million and accounted for 91.1% of the total revenues. The company’s annual recurring revenues rose 88% YoY to $686.1 million as of April 30. CrowdStrike added 830 net new subscription customers in the first quarter. The subscription base was 6,261 at the end of April 30.

Financial outlook

In the second quarter, CrowdStrike expects its total revenue to be between $185.8 million and $190.3 million. The company also expects its adjusted EPS to be between -$0.02 and $0.00 for the second quarter.

For fiscal 2021, CrowdStrike expects its total revenue to be between $761.2 million and $772.6 million. The company also expects its adjusted EPS to be between -$0.08 and -$0.05 for fiscal 2021.

Wall Street analysts expect CrowdStrike to report an adjusted EPS of -$0.05 on revenue of $178.9 million in the second quarter. Analysts also expect the company’s sales to rise 54.9% YoY in fiscal 2021 to $745.9 million. The sales could rise by 28.6% YoY in fiscal 2022 to $959.1 million. The adjusted EPS will likely increase from -$0.42 in fiscal 2020 to -$0.11 in fiscal 2021. They expect an adjusted EPS of $0.19 in fiscal 2022.

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Analysts’ recommendations for CrowdStrike

Among the 21 analysts following CrowdStrike stock, 16 recommend a “buy,” four recommend a “hold,” and one recommends a “sell.” Wall Street analysts’ mean target price on the stock is $94.32, which implies a 2.2% gain from the current level of $92.25. The consensus target price for the stock has risen from $73.32 in May—a growth of 28.6%.

Many analysts revised their target price for CrowdStrike stock after its first-quarter earnings.

  • Piper Sandler increased its target price from $70 to $115.
  • Credit Suisse increased its target price from $65 to $80.
  • D.A. Davidson increased its target price from $105 to $120.
  • Jefferies increased its target price from $55 to $100.
  • J.P. Morgan increased its target price from $109 to $120.
  • Oppenheimer increased its target price from $85 to $110.
  • Needham increased its target price from $105 to $120.
  • RBC increased its target price from $90 to $105.
  • Mizuho increased its target price from $92 to $115.
  • Stifel increased its target price from $90 to $108.
  • Suntrust Robinson increased its target price from $95 to $120.
  • Barclays increased its target price from $100 to $114.
  • Macquarie increased its target price from $89 to $110.
  • JMP Securities increased its target price from $60 to $110.

Stock returns

CrowdStrike stock fell 2.7% on Tuesday and ended the day at $92.25. At this closing price, the company’s market cap is $19.9 billion. Notably, the stock is trading 9.5% below its 52-week high of $101.88 and 188.7% above its 52-week low of $31.95.

Based on the closing price, CrowdStrike stock was trading 16.1% above its 20-day moving average of $79.48. The stock is also trading 33.0% above its 50-day moving average of $69.35 and 46.2% above its 100-day moving average of $63.08. CrowdStrike’s 14-day relative strength index number is 73, which indicates that it’s overbought.

CrowdStrike stock has a middle Bollinger Band level of $79.48, while its lower Bollinger Band level is $67.90. On Tuesday, CrowdStrike stock closed near its upper Bollinger Band level of $91.06, which indicates that it’s overbought.

At 8:24 AM ET today, the S&P 500 futures rose 0.50%, while the Dow futures rose 0.75%. Read CFOs Expect a Dow Jones Crash: Is Double-Dip Next? to learn more.

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