IT security giant CrowdStrike (CRWD) is sinking 12% after the company reported stronger-than-expected fiscal fourth-quarter financial results but provided guidance that came in below analysts' average estimates.

However, a number of analysts remain bullish on CRWD.

Security personnel at their consoles, monitoring a global network of threats in real-time.

The Highlights of CRWD's Q4 Results and Guidance

CrowdStrike reported that its revenue had climbed 25% versus the same period a year earlier to $1.06 billion, $20 million above analysts' average estimate. Its earnings per share, excluding certain items, came in at $1.03, far above the mean outlook of 86 cents.

But CRWD expects its adjusted EPS for the three months that end in April to come in at 64 cents to 66 cents, way below analysts' average estimate of 96 cents.

CRWD's Comments

CEO George Kurtz noted that the company is investing in AI and added that CRWD was ending an initiative that provided customers with "additional product and... subscriptions."

Due partly to the increased deployment of platforms that the latter program spurred and the termination of discounts offered by CRWD, Kurtz is confident that the company's subscription growth will accelerate in the second half of its current fiscal year.

Analysts' Reactions

Wedbush's Dan Ives wrote that "this quarter reaffirms our positive long-term view of CrowdStrike." He kept an Outperform rating on the shares.

Bank of America's Tal Liani agreed that the results were generally strong, although he noted that the company's net revenue retention rate keeps decelerating. Nonetheless, he remains upbeat on the company's core fundamentals.

While we acknowledge the potential of CRWD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO  8 Best Wide Moat Stocks to Buy Now  and  30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.