After the cybersecurity company posted a fiscal fourth-quarter earnings forecast below analysts' estimates, CrowdStrike Holdings Inc. (CRWD, Financial) shares dropped 6% in premarket trade Wednesday, raising questions among investors about its recovery from a recent worldwide outage.
Bloomberg data indicates the company predicted adjusted earnings of $0.84 to $0.86 per share for the quarter, below the consensus estimate of $0.87. The paper centers on a massive software update failure in July that affected millions of Microsoft Windows machines and affected sectors including air travel, banking, and health care.
With adjusted earnings of $0.93 per share compared to analysts' projections of $0.81, CrowdStrike announced Q3 revenue of $1.01 billion, exceeding Wall Street's forecasts despite the depressing outlook.
As of October 31, CrowdStrike had yearly recurring income of over $4 billion, noted Chief Executive Officer George Kurtz, placing it as "the fastest and only pure-play cybersecurity software company" to reach this milestone. Still, the forecasts eclipsed these gains, showing residual investor worries.
