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CrowdStrike Holdings (CRWD - Free Report) is scheduled to report third-quarter fiscal 2023 results on Nov 29.

The company anticipates third-quarter fiscal 2023 revenues in the range of $569.1-$575.9 million. The Zacks Consensus Estimate for the same is pegged at $574.7 million, indicating an improvement of 51.2% from the year-ago quarter.

CrowdStrike expects non-GAAP earnings between 30 cents and 32 cents per share. The Zacks Consensus Estimate for non-GAAP earnings stands at 32 cents per share, suggesting an improvement of 88.2% year over year.

The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 45.8%.

Let’s see how things have shaped up before this announcement.
 

CrowdStrike Price and EPS Surprise

CrowdStrike price-eps-surprise | CrowdStrike Quote
 

Factors to Consider

CrowdStrike’s third-quarter results are likely to reflect the benefits of the continued solid demand for its products, given the healthy environment of the global security market. The increasing number of people logging into employers' networks has triggered a greater need for security and might have spurred demand for CRWD’s products in the third quarter. A strong pipeline of deals indicates the same.

The acquisitions of SecureCircle and Humio are likely to have strengthened CrowdStrike’s capabilities and may have attracted new customers during the quarter under review.

Moreover, CrowdStrike’s collaboration with Amazon Web Services (“AWS”) is an upside, benefiting the company from its products’ availability on the AWS platform. The expansion in the volume of transactions through Amazon’s AWS Marketplace, growth in co-selling opportunities with AWS salesforce, and the uptake of AWS service integrations are likely to have contributed to CRWD’s earnings in the to-be-reported quarter.

Additionally, stellar revenue growth in subscriptions might have contributed significantly to the third quarter’s top line. Further, the increasing number of net new subscription customers may have acted as a tailwind.

However, elevated expenses for enhancing sales and marketing capabilities and increased investments in research and development are likely to have weighed on CrowdStrike’s third-quarter bottom line.
 

What Our Model Says

Our proven model does not conclusively predict an earnings beat for CrowdStrike this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though CrowdStrike currently holds a Zacks Rank of 3, it has an Earnings ESP of -2.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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