Fubotv earnings beat by $0.10, revenue topped estimates
On Wednesday, BofA Securities maintained a Buy rating on CrowdStrike Holdings (NASDAQ:CRWD) stock with a consistent price target of $365.00.
The firm anticipates CrowdStrike's second-quarter earnings, set to be released on August 28, will align with prior guidance and project a revenue growth of 28%.
The upcoming earnings report will be the company's first public address since the global IT outage on July 19th, which was caused by a software incident.
The IT outage, which occurred just 10 days before the quarter ended, is expected to have caused delays in sales cycles and possibly led to customer discounts.
Consequently, BofA Securities forecasts a 50% sequential decrease in net new Annual Recurring Revenue (ARR). In anticipation of these impacts, CrowdStrike's management is expected to adopt a conservative stance and revise the full-year guidance downwards.
BofA Securities has adjusted its fiscal year 2024 revenue growth estimate for CrowdStrike to 28%, a reduction from the previous guidance of 31%. This revised estimate considers the potential effects of the July software incident, though the firm acknowledges that the actual figures could significantly differ from their projections.
CrowdStrike's forthcoming earnings statement will provide further insight into the financial repercussions of the July incident and the company's outlook for the remainder of the fiscal year. Investors and stakeholders are keenly awaiting management's commentary and revised forecasts in light of these recent challenges.
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