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Key Takeaways
- CrowdStrike shares jumped nearly 7% in late trading on Tuesday after the cybersecurity software company topped Wall Street’s quarterly forecasts and raised its full-year outlook.
- The company credited its unified Falcon platform, which it says customers of all sizes are embracing to meet their cybersecurity requirements, for its results.
- CrowdStrike shares may face selling pressure around $338 near the top trendline of a trading range.
Shares in cybersecurity software maker CrowdStrike (CRWD) surged nearly 7% in Tuesday’s extended-trading session after the company exceeded analysts’ quarterly expectations and lifted its full-year guidance amid customers embracing its unified Falcon platform.
For the three months ending April 30, the company posted adjusted earnings of 93 cents per share, above the 89 cents-a-share figure expected by analysts. Revenue in the period of $921 million jumped 33% from a year earlier and surpassed the $905 million Street estimate. Subscription revenue in the quarter tallied $872 million, up 34% year-over-year (YOY).
CrowdStrike’s Unified Falcon Platform Drives Outlook
Turning to the current quarter ending in July, CrowdStrike pegged revenue guidance in the range of $958.3 million to $961.2 million and adjusted profits of 98 to 99 cents a share. Analysts had forecast net sales of $955 million and 91 cents a share in adjusted earnings.
Looking ahead to the annual outlook, the cloud security software provider now expects fiscal 2025 sales to range between $3.976 billion to $4.011 billion, up from its prior forecast of $3.925 billion to $3.989 billion. The $3.994 billion midpoint of the revised guidance also topped Wall Street modeling of $3.97 billion.
In addition, the company lifted its full-year bottom-line guidance, saying it sees adjusted earnings in the period of between $3.93 and $4.03 per share, above its earlier projection of $3.77 to $3.97 a share.
CrowdStrike credited the strength of its quarterly results and outlook to its unified Falcon platform. “The Falcon platform’s differentiated architecture creates a wide competitive moat and uniquely enables CrowdStrike to solve the industry’s biggest cybersecurity, IT and data problems, said president and CEO George Kurtz said in the company’s earnings release. “Customers of all sizes are standardizing on the Falcon platform to achieve better security outcomes and lower their TCO,” he added.
Watch This Chart Level Amid Earning’s-Driven Strength
CrowdStrike shares broke above a four-month trading range in mid-May but promptly reversed course, indicating a possible bull trap. Leading into the company’s quarterly results, the price has continued to move lower, closing Tuesday below the closely-watched 50-day moving average.
Amid the stock’s expected earnings-driven rally on Wednesday, investors should monitor the $338 level, an area on the chart where the price may face selling pressure near the trading range’s top trendline. A volume-backed breakout above this level would invalidate the bull trap signal and likely see the shares continue their longer-term uptrend.
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