Cloudflare (NYSE:NET) Issues Q2 2024 Earnings Guidance

Cloudflare (NYSE:NET) updated its second quarter 2024 earnings guidance on Friday. The company provided EPS guidance of 0.140-0.140 for the period, compared to the consensus EPS estimate of 0.130. The company issued revenue guidance of $393.5 million-$394.5 million, compared to the consensus revenue estimate of $393.5 million. Cloudflare also updated its FY 2024 guidance to 0.600-0.610 EPS.

Analysts Set New Price Targets

Several analysts recently weighed in on NET shares. UBS Group decreased their price objective on Cloudflare from $88.00 to $76.00 and set a sell rating for the company in a report on Friday. Capital One Financial initiated coverage on Cloudflare in a research note on Wednesday, January 17th. They issued an equal weight rating and a $83.00 target price on the stock. Robert W. Baird cut their target price on Cloudflare from $100.00 to $94.00 and set an outperform rating on the stock in a research note on Friday. Sanford C. Bernstein started coverage on Cloudflare in a research note on Thursday, January 18th. They issued a market perform rating and a $85.00 target price on the stock. Finally, Cantor Fitzgerald dropped their price target on Cloudflare from $100.00 to $80.00 and set a neutral rating on the stock in a research note on Friday. Four research analysts have rated the stock with a sell rating, ten have given a hold rating and nine have assigned a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of Hold and an average price target of $90.13.

Cloudflare Stock Performance

NYSE:NET traded down $0.11 during trading hours on Monday, reaching $74.29. 6,576,970 shares of the stock were exchanged, compared to its average volume of 3,961,452. The company has a quick ratio of 3.51, a current ratio of 3.51 and a debt-to-equity ratio of 1.61. The firm has a 50 day simple moving average of $93.67 and a 200-day simple moving average of $83.75. Cloudflare has a 52 week low of $44.60 and a 52 week high of $116.00. The stock has a market capitalization of $25.08 billion, a P/E ratio of -141.34 and a beta of 1.15.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, February 8th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.01. The business had revenue of $362.47 million for the quarter, compared to analysts’ expectations of $352.70 million. Cloudflare had a negative return on equity of 12.78% and a negative net margin of 13.10%. As a group, sell-side analysts forecast that Cloudflare will post -0.2 earnings per share for the current fiscal year.

Insider Transactions at Cloudflare

In other news, Director Carl Ledbetter sold 7,962 shares of the firm’s stock in a transaction on Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total value of $648,266.04. Following the completion of the sale, the director now owns 1,446,957 shares of the company’s stock, valued at $117,811,238.94. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. In other Cloudflare news, COO Michelle Zatlyn sold 277,376 shares of the firm’s stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $101.17, for a total transaction of $28,062,129.92. Following the transaction, the chief operating officer now directly owns 38,545 shares in the company, valued at $3,899,597.65. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Carl Ledbetter sold 7,962 shares of the firm’s stock in a transaction dated Wednesday, February 7th. The shares were sold at an average price of $81.42, for a total value of $648,266.04. Following the transaction, the director now owns 1,446,957 shares in the company, valued at $117,811,238.94. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,044,347 shares of company stock worth $101,703,776. 12.83% of the stock is currently owned by company insiders.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.