CrowdStrike Earnings Lift Cybersecurity Stocks | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #ransomware

Cybersecurity stocks rose Wednesday after CrowdStrike Holdings Inc.’s (CRWD) quarterly earnings and forecasts topped Wall Street estimates.

CrowdStrike reported adjusted earnings of 95 cents a share of the quarter ended Jan. 31, well above the 82 cents analysts expected. Revenue rose 33% from the year-ago quarter to $845.3 million, also beating expectations.

For the current quarter, CrowdStrike forecasts adjusted earnings of between 89 cents and 90 cents a share on revenue of $902.2 million to $905.8 million. Full-year earnings per share are expected to fall within a range of $3.77 to $3.97, and revenue is seen at between $3.92 billion and $3.99 billion. All guidance exceeded the Street’s consensus estimates. 

“As sales cycles normalize and deal sizes continue to improve, we believe these guidance targets could ultimately prove conservative over the next few quarters,” wrote Bank of America analysts of CrowdStrike results in a research note Wednesday.

CrowdStrike shares soared as much as 20% at the open Wednesday before paring their gains to trade about 9.4% higher at $325.97 as of about 3:30 p.m. ET. Several industry peers, including Fortinet Inc. (FTNT) and Okta Inc. (OKTA), followed CrowdStrike higher. The First Trust Nasdaq Cybersecurity ETF (CIBR) traded about 0.9% higher.  

The exceptions: ZScaler Inc. (ZS), down almost about 2%, and Palo Alto Networks Inc. (PANW), off nearly 5%. The latter sent cybersecurity stocks plummeting two weeks ago when it warned of “spending fatigue” amid customers.

However, concerns about spending may not be as pervasive as they once appeared. CrowdStrike “did not see any fatigue and noted that it believes the platforms that are struggling are M&A based and not tightly integrated,” wrote Jefferies analysts in a note Wednesday.


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