BRAZIL – 2022/03/10: In this photo illustration the logo from the cyber security company CrowdStrike … [+]
CrowdStrike Holdings is scheduled to report earnings after Tuesday’s close. The stock hit a record high of $298.48/share in 2021 and is currently trading near $213/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $0.74/share on $777.13 million in revenue. Meanwhile, the so-called Whisper number is a gain of $0.80/share. The Whisper number is the Street’s unofficial view on earnings.
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A Closer Look At The Fundamentals
The company’s earnings are growing very nicely in recent years and quarters. The company turned profitable in 2021 and has steadily increased its earnings since! The Street expects earnings to grow by 84% in 2024 compared to 2023 and then grow by another 25% in 2025 compared to 2024.
A Closer Look At The Technicals
Technically, the stock is acting very well. The stock is up very nice this year and continues to hit new multi-year highs. In the short-term the stock is extended and can easily pullback after earnings are announced. That said, there is no “rule” that says overbought markets must pullback. Many time, overbought market get a lot more overbought before they consolidate/pullback.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com stock market membership website.
