Why CrowdStrike Stock Sank This Week
CrowdStrike (NASDAQ: CRWD) stock fell 11.5% across this week's trading. The cybersecurity specialist's share price lost ground in conjunction with the company's third-quarter earnings release, despite results in the period being quite strong.
CrowdStrike posted non-generally-accepted-accounting-principles (non-GAAP) (adjusted) earnings of $0.40 per share on revenue of $581 million in Q3, while the average analyst estimate had called for per-share earnings of $0.31 on sales of $574 million in the quarter. Even though the business posted top- and bottom-line beats in the period and raised its earnings outlook for the current fiscal year, management's guidance for the next fiscal year spooked the market and prompted big sell-offs for the stock.
CrowdStrike delivered a beat-and-raise quarterly report when it released earnings on Nov. 29. But guidance for annualized recurring revenue and subscription revenue growth to dip into low-30s and low- to mid-30s percentage rates, respectively, next fiscal year caused a substantial valuation pullback.
Source Fool.com
