Yahoo Finance CrowdStrike Holdings, Inc. Just Beat EPS By 38%: Here's What Analysts Think Will Happen Next
Investors in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) had a good week, as its shares rose 4.8% to close at US$330 following the release of its yearly results. It looks like a credible result overall - although revenues of US$3.1b were what the analysts expected, CrowdStrike Holdings surprised by delivering a (statutory) profit of US$0.37 per share, an impressive 38% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for CrowdStrike Holdings
After the latest results, the 45 analysts covering CrowdStrike Holdings are now predicting revenues of US$3.97b in 2025. If met, this would reflect a huge 30% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 126% to US$0.84. Before this earnings report, the analysts had been forecasting revenues of US$3.95b and earnings per share (EPS) of US$0.75 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.
The consensus price target rose 20% to US$384, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values CrowdStrike Holdings at US$540 per share, while the most bearish prices it at US$196. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that CrowdStrike Holdings' revenue growth is expected to slow, with the forecast 30% annualised growth rate until the end of 2025 being well below the historical 43% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. So it's pretty clear that, while CrowdStrike Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CrowdStrike Holdings following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for CrowdStrike Holdings going out to 2027, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for CrowdStrike Holdings that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
