Shares of CrowdStrike Holdings Inc (NASDAQ: CRWD) jumped 10% in extended trading on Tuesday after reporting market-beating results for its fourth financial quarter.
Investors also cheered the company’s guidance that surpassed analysts’ estimates. CrowdStrike now forecasts 50 cents to 51 cents of adjusted per-share earnings in its current quarter on up to $678.2 million in revenue.
In comparison, experts had called for 42 cents per share and $663.3 million, respectively. Sharing his post earnings view on CrowdStrike stock, New Street Advisors’ Delano Saporu said:
Security is one that’s not stopping as much as other areas of enterprise spend. They have minimal debt and they have a lot of cash. So, structurally, they’re set up pretty nicely. I think this is one you could potentially own.
CrowdStrike’s full-year outlook also topped expectations. The cybersecurity stock is now up over 30% year-to-date.
Lost $47.5 million versus the year-ago $42 million
Per-share loss also expanded from 18 cents to 20 cents
Adjusted net income printed at 47 cents per share
Revenue climbed 48% year-on-year to $637.4 million
Consensus was 43 cents loss and $625 million revenue
Other notable figures in the earnings press release include a 48% increase in annual recurring revenue to $2.56 billion – also better than expected. On CNBC’s Special: Taking Stock, Saporu added:
It’s a lot more attractive now. It’s a stock you want to hold for a little bit because they’re in a growth industry and this industry will keep growing. If they continue to eat up market share, it could be a benefit for investors.
His constructive view is in line with Wall Street that also currently has a consensus “buy” rating on CrowdStrike stock.
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