CrowdStrike (CRWD) Stock Sinks on Weak Guidance

  • CrowdStrike (CRWD) stock is dropping after reporting earnings for the third quarter.
  • The drop is due to weak revenue guidance for the upcoming quarter and year.
  • This news is pulling down shares of CRWD stock despite a Q3 earnings beat.
A sign with the Crowdstrike (CRWD) company logo

Source: VDB Photos / Shutterstock.com

CrowdStrike (NASDAQ:CRWD) stock is falling on Wednesday following the release of its earnings report for the third quarter of 2022.

The bad news for CRWD stock comes from the company’s latest guidance. This has Crowdstrike expecting revenue for the fourth quarter to range from $619.1 million to $628.2 million. That doesn’t look good next to Wall Street’s Q4 revenue estimate of $632.84 million.

To go along with that, CrowdStrike is looking for fiscal 2022 revenue to come in between $2.223 billion and $2.232 billion. The midpoint of that sits below analysts’ revenue estimate of $2.23 billion for the year.

George Kurtz, co-founder and CEO of CrowdStrike, said the following in the earnings report:

“Total net new ARR was below our expectations as increased macroeconomic headwinds elongated sales cycles with smaller customers and caused some larger customers to pursue multi-phase subscription start dates, which delays ARR recognition until future quarters.”

CRWD Did Beat Estimates for Q3

Even with the weak guidance, results for Q3 2022 weren’t so bad. That included adjusted earnings per share of 40 cents alongside revenue of $580.9 million. Both of those beat out Wall Street’s estimates of 32 cents per share and revenue of $575.06 million.

Despite that, the weak guidance has rattled investors with heavy trading pulling shares lower today. As of this writing, more than 15 million shares of CRWD stock have changed hands. That’s already well above the daily average trading volume of 3.6 million units.

CRWD stock is down 18.2% as of Wednesday morning.

Investors looking for more of the most recent stock market news will want to stick around!

InvestorPlace has all of the hottest stock market news that traders need to know about on Wednesday! That includes a market crash warning, what’s moving Biogen (NASDAQ:BIIB) stock today and more. You can find out all about these matters at the links below!

More Wednesday Stock Market News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/11/crowdstrike-crwd-stock-sinks-on-weak-guidance/.

©2023 InvestorPlace Media, LLC