CrowdStrike Stock Price Explodes 20% On Earnings Beat

CrowdStrike Stock Price Explodes 20% On Earnings Beat

  • Adjusted earnings: negative $0.02 vs negative $0.08 expected
  • Revenue: $152.1 million vs $137.8 million ($80.5 million reported a year ago)
  • Stock trades 20% as it approaches key short-term resistance

Shares of CrowdStrike (NASDAQ:CRWD) are trading around 20% higher today after the cybersecurity company smashed earnings forecast.

Fundamental analysis: Sales doubled

CrowdStrike announced a fourth-quarter loss of $28.4 million, compared to a loss of $31.2 million a year ago. Adjusted earnings per share came in at negative $0.02 per share, beating analysts forecasts of $0.08 a share.

“Cybersecurity has, and will remain essential and mission critical to organizations as it provides business resiliency and meets compliance requirements. In times of crisis, adversaries will try to exploit the situation to prey on the public’s fear and escalate new attacks,” CrowdStrike co-founder and Chief Executive George Kurtz said in a statement.

The cybersecurity company also reported that its revenue almost doubled to $152.1 million, from $80.5 million a year ago. Analysts expected a revenue of $137.8 million.

CrowdStrike previously communicated that it expects to lose between $0.09 to $0.08 a share on the revenue of $135.9 million to $138.6 million in the fourth quarter.

“Looking into fiscal 2021 and beyond, the powerful combination of our cloud-native platform and frictionless go-to-market positions us well as the fundamental endpoint platform for the future,” added Kurtz.

For the first quarter, CrowdStrike said it expects an adjusted loss of $0.07 cents to $0.06 cents a share. For the full year, the company forecasts a loss of $0.14 to $0.10 a share on revenue of $723.3 million to $733.5 million.

Technical analysis: Half of the losses erased

Following such a positive earnings report, it is not surprising that the shares of CrowdStrike rallied as much as 20% in the post market yesterday, a rally which has continued in the premarket trading session as well.

CrowdStrike stock daily chart (TradingView)

With today’s gains, Crowdstrike stock price has recovered around 50% of its recent losses. A few days ago, the stock price printed an all-time low of $31.95. A weekly close above the $45 mark would be an important milestone for the bulls.

The price action is now approaching the key short-term resistance area ranging from $50 to $54. A break of this zone paves the way for a test of the February high of $67.56.

Summary

Shares of CrowdStrike trade around 20% higher after the company reported better-than-expected fourth-quarter earnings. The revenue numbers smashed forecasts, while the company also earned more than expected.

By Michael Harris
I began trading in my early 20's at a local company and since then have combined my knowledge and love of content to become a news writer. I am passionate about bringing insightful articles to readers and hope to add some value to your portfolios!

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