Shares of CrowdStrike Holdings (CRWD) are down 9% after the cybersecurity concern reported disappointing forward guidance.
The weak outlook overshadowed what were otherwise strong fourth-quarter 2024 financial results from the company.
Texas-based CrowdStrike announced earnings per share (EPS) of $1.03 U.S., which trounced consensus expectations of $0.86 U.S.
Revenue of $1.06 billion U.S. also beat Wall Street forecasts that called for $1.04 billion U.S. The company’s sales grew 25% from a year earlier.
However, despite the strong results, CrowdStrike’s stock fell as the company offered forward guidance that fell short of analysts’ expectations.
Management said they foresee earnings in the current first quarter of between $0.64 U.S. and $0.66 U.S. a share, well below Wall Street’s estimate of $0.95 U.S.
Earnings for the entire year are expected to be between $3.33 U.S. and $3.45 U.S. per share, also below forecasts of $4.40 U.S.
Management blamed the poor outlook on lingering impacts from the company’s software update last summer that led to widespread information technology outages worldwide.
Banks, airlines, television broadcasters, and mega-cap technology companies were all disrupted by the IT outage.
CrowdStrike has since been hit by multiple lawsuits over the incident, including a class action lawsuit filed by the company’s shareholders.
Prior to today (Jan. 5), CrowdStrike’s stock had gained 31% over the last 12 months to trade at $390.16 U.S. per share.
