CrowdStrike drops after disappointing earnings outlook

On November 27, 2024By Littum

(Bloomberg) — CrowdStrike Holdings Inc . issued a weaker-than-expected fourth-quarter earnings forecast, disappointing investors who have been watching for signs that the cybersecurity company has recovered from a massive summer disruption.

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The firm expects adjusted earnings of 84 cents to 86 cents per share, it said in a statement Tuesday. Analysts expected 87 cents, according to estimates compiled by Bloomberg.

Shares of CrowdStrike fell 1.5% in extended trading after the results were announced.

The report is the company’s second since a flawed CrowdStrike update crashed millions of devices running Microsoft Corp.’s Windows systems. The outage, which unfolded on July 19, disrupted a wide range of industries, including air travel, banking and healthcare. The company had sales three months ago that beat expectations, a sign that investors believed the global IT fallout would not materially affect its finances.

Third-quarter revenue represented a bright spot in Tuesday’s report. Sales for the period came in at $1.01 billion, beating Wall Street expectations.

Delta Airlines’ operations were hampered for days as a result of the outage, costing the airline at least $500 million in cash losses, according to a lawsuit it filed against CrowdStrike in October. CrowdStrike said Delta shifted blame “from its failure to update its outdated IT infrastructure,” in a statement at the time.

(Updates with additional information throughout.)