Why CrowdStrike Stock Is Hitting 52-Week Lows Today

CrowdStrike Holdings Inc CRWD shares are trading lower Wednesday morning. The company reported better-than-expected financial results and issued strong earnings guidance, but it also warned of "increased macroeconomic headwinds."

What Happened: CrowdStrike said third-quarter revenue jumped 53% year-over-year to $581 million, which beat average analyst estimates of $573.82 million, according to Benzinga Pro. The cybersecurity firm reported ARR of $2.34 billion, up 54% year-over-year. 

CrowdStrike reported quarterly adjusted earnings of 40 cents per share, which beat estimates of 31 cents per share.

"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," said Geroge Kurtz, co-founder and CEO of CrowdStrike.

Outlook: CrowdStrike sees fourth-quarter revenue between $619.1 million and $628.2 million versus estimates of $632.84 million. The company expects fourth-quarter earnings to be between 42 cents and 45 cents per share versus estimates of 34 cents per share.

Full-year revenue is expected to be between $2.223 billion and $2.232 billion versus estimates of $2.23 billion. CrowdStrike said full-year earnings are expected to be in a range of $1.49 to $1.52 per share versus estimates of $1.32 per share.

Analyst Assessment: Several analysts adjusted ratings and price targets on the stock following the company's quarterly results.

• Barclays analyst Saket Kalia maintained CrowdStrike with an Overweight and lowered the price target from $180 to $155.
• Stifel analyst Brad Reback downgraded CrowdStrike from Buy to Hold and lowered the price target from $225 to $120.
• Piper Sandler analyst Rob Owens maintained CrowdStrike with an Overweight and lowered the price target from $240 to $175.
• JMP Securities analyst Trevor Walsh maintained CrowdStrike with a Market Outperform and lowered the price target from $275 to $235.
• Truist Securities analyst Joel Fishbein maintained CrowdStrike with a Buy and lowered the price target from $275 to $200.
• BC Capital analyst Matthew Hedberg maintained CrowdStrike with an Outperform and lowered the price target from $200 to $165.

CRWD Price Action: CrowdStrike is making new 52-week lows on Wednesday.

The stock was down 16.7% at $114.76 at time of publication, according to Benzinga Pro.

Photo: Markus Spiske from Pixabay.