Crowdstrike Holdings (CRWD) Surpasses Expectations with Record Quarter and Strong Guidance

TD Cowen's Shaul Eyal raised their price target on Crowdstrike Holdings (NASDAQ: CRWD) by 17.6% from $340 to $400 on March 6, 2024. The analyst maintained their Buy rating on the stock.

Crowdstrike Holdings, a leading provider of cloud-delivered protection across endpoints and cloud workloads, reported impressive fourth-quarter and fiscal year 2024 earnings. The company's robust performance was highlighted by a 34% year-over-year growth in annual recurring revenue (ARR), a record-setting 33% free cash flow margin, and "impressive" guidance for fiscal year 2025, according to an analyst note.

In the fourth quarter of 2024, Crowdstrike Holdings surpassed expectations with earnings per share (EPS) of $0.95, beating the Zacks Consensus Estimate of $0.82. This figure also marked a significant increase of 102% compared to the EPS of $0.47 reported in the fourth quarter of the previous year. The company's revenue for the quarter came in at $845.34 million, surpassing the Zacks Consensus Estimate of $839.05 million and exhibiting a growth of 32.6% year over year.

Crowdstrike Holdings' performance for the full fiscal year 2024 was equally impressive. The company reported EPS of $3.09, which represented a remarkable 100.6% increase over the previous year's EPS of $1.54. Additionally, the company's revenue for the fiscal year reached $3.06 billion, surpassing the previous year's revenue of $2.24 billion by 36.6%.

Notably, Crowdstrike Holdings generated $347 million from operations in the fourth quarter of 2024 and achieved a free cash flow of $283 million. For the full fiscal year 2024, the company generated $1.17 billion from operations and achieved a free cash flow of $938.2 million.

Looking ahead, Crowdstrike Holdings' management provided strong guidance for the first quarter of fiscal year 2025, with an expected EPS range of $0.89 to $0.90 and revenue ranging from $902.2 million to $905.8 million. For the full fiscal year 2025, the company anticipates an EPS range of $3.77 to $3.97 and revenue between $3.93 billion and $3.99 billion.

In response to the company's outstanding performance and positive outlook, analysts have raised their price targets and maintained their ratings on Crowdstrike Holdings. KeyBanc's Eric Heath raised the price target by 14.7% from $375 to $430 and maintained a Strong Buy rating on the stock. Mizuho's Gregg Moskowitz increased the price target by 8.3% from $360 to $390 and reiterated a Strong Buy rating. JMP Securities' Trevor Walsh raised the price target by 21.2% from $330 to $400 and maintained a Buy rating.

Furthermore, all top-rated analysts currently rate Crowdstrike Holdings as a Strong Buy or Buy, with no analysts holding a Hold rating and none recommending or strongly recommending selling the stock.

Since the release of Crowdstrike Holdings' quarterly report on March 5, 2024, the stock price has surged by 10.8%. Year-over-year, the stock has seen an impressive increase of 158.3%, outpacing the broader market as the S&P 500 recorded a growth of 26.1% during the same period.

TD Cowen analyst Shaul Eyal, who raised the price target on Crowdstrike Holdings, is ranked in the top 7% of Wall Street analysts by WallStreetZen. With an average return of 20.3% and a 62.7% win rate, Eyal specializes in the Industrials and Technology sectors, making their analysis highly regarded.

Crowdstrike Holdings' strong financial performance and positive analyst sentiment highlight the company's position as a leader in the cybersecurity industry. With its cloud-delivered protection solutions and innovative platform, the company continues to attract customers worldwide, solidifying its position as cybersecurity's "consolidator of choice, innovator of choice, and platform of choice to stop breaches," as stated by President, CEO & Co-founder George Kurtz.

About Crowdstrike Holdings: Crowdstrike Holdings, Inc. was incorporated in 2011 and is based in Austin, Texas. The company provides cloud-delivered protection across endpoints and cloud workloads, offering a range of services including threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, and log management. Crowdstrike primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team and network of channel partners.

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