Why did CrowdStrike stock shoot up today? Q4, outlook top expectations
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CrowdStrike Holdings (NASDAQ:CRWD) shares soared on Thursday after the cybersecurity firm posted fourth-quarter earnings and outlook that topped Wall Street expectations, prompting praise from analysts.
Late Wednesday, CrowdStrike (CRWD) said it earned an adjusted 30 cents per share for the fourth-quarter, generating $431 million in revenue. Analysts were expecting the company to earn 20 cents and $411 million in revenue.
In addition, CrowdStrike (CRWD) said annual recurring revenue came in at $1.73 billion, up 65% year-over-year, topping analysts' expectations for $1.68 billion. ARR is seen as a key measure of CrowdStrike's (CRWD) business health as it helps measure the company's subscriber growth.
CrowdStrike (CRWD) shares gained nearly 13% to $191.75 on heavy volume.
Stifel analyst Brad Reback, who rates CrowdStrike (CRWD) buy with a $250 price target, noted that the company's "growth opportunity remains in the early days, especially given the ample runway across both land and expand motions."
Truist analyst Joel Fishbein reiterated his buy rating and $275 price target following the results, noting that strength is being driven by digital transformation, increased cloud adoption, heightened threats and a favorable competitive landscape.
"The company is transforming from being just an endpoint player into a platform provider for an enterprisesâ security needs," Fishbein added.
Looking ahead, CrowdStrike (CRWD) said it expects to earn between $1.03 and $1.13 a share for fiscal 2023, on revenue in a range of $2.13 billion and $2.16 billion.
Last month, Wedbush Securities said CrowdStrike (CRWD) was among the several cyber security companies likely to benefit from the rise in cyber attacks around the world as a result of Russia's invasion of Ukraine.