CrowdStrike drops after guidance boost as analysts suggest 'conservative' forecast
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CrowdStrike (NASDAQ:CRWD) shares dropped more than 5% on Wednesday even as the cybersecurity company boosted its outlook for 2023, though several Wall Street analysts noted the raised forecast may wind up being conservative given the momentum behind the sector.
Morgan Stanley analyst Hamza Fodderwala, who has an overweight rating on CrowdStrike (CRWD) shares, noted that given the current global economy, the forecast "is a bit more conservative," adding that while estimates moved up "modestly," there is still plenty of room for the company to "further beat and raise."
CrowdStrike (CRWD) raised its 2023 revenue outlook to be between $2.223B and $2.232B, compared to a prior outlook of $2.1905B and $2.2058B. It also raised its non-GAAP income from operations forecast to be between $313.7M and $320.5M.
Earnings, excluding one-time items, are expected to be between $1.31 and $1.33 per share, up from a prior view of $1.18 and $1.22 per share. Analysts were expecting $1.21 per share in earnings.
Jefferies analyst Joseph Gallo, who has a buy rating, noted that CrowdStrike (CRWD) is seen as "more resilient" than others in the space, given its portfolio of products and strong go to market. However, the company did see an uptick in deal cycle time, largely due to the weakening global economy. 
Several other cybersecurity stocks fell on back of the news, including Fortinet (FTNT), CyberArk Software (CYBR) and Palo Alto Networks (PANW), which all saw fractional losses.
In June, Morgan Stanley upgraded CrowdStrike (CRWD) on continued momentum in the space sector and the company's strong performance as it benefits from growing secular trends.