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The Key Takeaways
- After the markets close on Tuesday, CrowdStrike will report its results for the third quarter. Analysts are expecting a rise in revenue and profit.
- It will be CrowdStrike's first full quarter since a faulty July software update caused a global Microsoft Windows outage with wide-ranging impacts.
- Morgan Stanley analysts recently wrote that they believe the outage will have less of a negative impact on CrowdStrike's bookings than consensus estimates.
After markets close Tuesday, CrowdStrike (CRWD) is scheduled to report results for its fiscal 2025 third quarter, the cybersecurity company’s first full period since its faulty July software update led to a global Microsoft (MSFT) Windows outage with wide-ranging impacts.
In July, the cybersecurity firm, which provides services to some of the largest tech companies, and their cloud-computing platforms, like Microsoft Azure, released an update that was causing problems with Windows all over the world.
Visible Alpha tracks 27 analysts, 25 of whom rate CrowdStrike a “A” rating. “buy,” With one another “hold” The following are some examples of how to get started: “sell” Stock’s average stock price, based on each analyst rating, is $336.85. That’s about 7% less than the level of Monday. The stock has recovered the ground it lost in the days following the summer outage—including a 22% rally this month—but the average price target suggests analysts may be waiting for the company’s report to adjust their outlook.
Analysts anticipate CrowdStrike’s third quarter revenue to be $983.0 millions, up from $786.9 million last year, and a profit just $1.3million, down $26.7 million. CrowdStrike’s adjusted net profit is expected to be $203.5m, an increase from $199.2m, after removing one-off expenses.
This is the first full quarter since outage
This report provides an overview of CrowdStrike’s performance in the first quarter following the outage on July, and a look at the impact that incident had.
In a recent note, Morgan Stanley analysts said their research has shown CrowdStrike's bookings took a projected 15% year-over-year hit, better than the consensus 37% decline other analysts expect. The Morgan Stanley analysts said their research has indicated that many new deals have been paused rather than canceled, and said they haven't seen "material churn" in CrowdStrike's customer base as discounts and package deals have helped the company retain some momentum.
“The main difference in the competitive environment at this point is that CrowdStrike is no longer ‘automatically’ chosen by customers as the next endpoint security vendor of choice,” The analysts noted that Microsoft is still an option along with SentinelOne Networks (S), Palo Alto Networks and Microsoft.
Delta Air Lines is still involved in a duel lawsuit with the company. DAL suffered from the largest disruption of its operations among the major airlines as a result of the outage. CrowdStrike claims that Delta’s outdated IT systems are more to blame than the Windows update.
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