CrowdStrike Holdings


CRWD

is slated to release fourth-quarter fiscal 2021 results on Mar 16.

For the fiscal fourth quarter, the company estimates revenues in the $245.5-$250.5 million band. The Zacks Consensus Estimate for quarterly revenues is pegged at $251.1 million, indicating a 65.1% year-over-year surge.

For the bottom line, management expects to report between 8 cents and 9 cents per share. The Zacks Consensus Estimate for the same stands at 9 cents, indicating a whopping 550% year-over-year surge.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 202.78%.

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

Factors at Play

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

Moreover, as indicated by the company on its last earnings call, solid revenue growth in subscription is expected to have been the primary driver of the top line in the quarter under review. Increasing number of net new subscription customers might have been a key tailwind as well.

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 is triggering a greater need for security. This trend might have had spurred demand for CrowdStrike’s products during the fiscal fourth quarter. A strong pipeline of deals is an indicator of this.

Moreover, the typical seasonal decline in the average run rate is expected to have been less pronounced due to the stellar performance in the preceding quarter.

In addition, investment in the collaboration with

Amazon

‘s

AMZN

AWS is an upside. The company is benefiting from its products’ 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 during the period in discussion.

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 2 and has an Earnings ESP of -8.86%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:

Analog Devices, Inc

.

ADI

has an Earnings ESP of +0.05% and carries a Zacks Rank of 2, at present. You can see


the complete list of today’s Zacks #1 Rank stocks here.

AMETEK, Inc.


AME

has an Earnings ESP of +2.68% and carries a Zacks Rank of 3, currently.

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