Cloudflare (NYSE:NET) Updates Q3 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its third quarter earnings guidance on Thursday morning. The company provided earnings per share guidance of $0.18 for the period, compared to the consensus earnings per share estimate of $0.15. The company issued revenue guidance of $423-424 million, compared to the consensus revenue estimate of $422.74 million. Cloudflare also updated its FY 2024 guidance to 0.700-0.710 EPS.

Cloudflare Stock Performance

Shares of NYSE NET traded up $5.06 during midday trading on Friday, reaching $79.46. 10,348,642 shares of the company were exchanged, compared to its average volume of 2,542,594. The company has a current ratio of 3.51, a quick ratio of 3.51 and a debt-to-equity ratio of 1.61. Cloudflare has a 1 year low of $53.88 and a 1 year high of $116.00. The stock has a fifty day simple moving average of $77.83 and a 200 day simple moving average of $85.22. The stock has a market cap of $27.00 billion, a P/E ratio of -149.92 and a beta of 1.10.

Cloudflare (NYSE:NET) last announced its quarterly earnings data on Thursday, May 2nd. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.02. Cloudflare had a negative return on equity of 8.90% and a negative net margin of 6.90%. The company had revenue of $378.60 million for the quarter, compared to analyst estimates of $372.93 million. On average, research analysts forecast that Cloudflare will post -0.19 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Scotiabank assumed coverage on Cloudflare in a report on Monday, July 8th. They issued a sector perform rating and a $85.00 price target for the company. Morgan Stanley reissued an equal weight rating and set a $92.00 price objective on shares of Cloudflare in a research note on Monday, June 17th. Needham & Company LLC reissued a buy rating and set a $135.00 price objective on shares of Cloudflare in a research note on Friday. DZ Bank raised shares of Cloudflare from a hold rating to a buy rating and set a $95.00 price objective for the company in a research note on Tuesday, May 7th. Finally, Cantor Fitzgerald boosted their price objective on shares of Cloudflare from $80.00 to $85.00 and gave the company a neutral rating in a research note on Friday. Three investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and ten have issued a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of Hold and an average price target of $92.08.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, Director Carl Ledbetter sold 30,145 shares of the business’s stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $72.86, for a total transaction of $2,196,364.70. Following the completion of the sale, the director now owns 1,166,648 shares in the company, valued at approximately $85,001,973.28. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, COO Michelle Zatlyn sold 25,640 shares of the company’s stock in a transaction on Wednesday, July 3rd. The shares were sold at an average price of $85.28, for a total value of $2,186,579.20. Following the completion of the sale, the chief operating officer now owns 211,394 shares in the company, valued at approximately $18,027,680.32. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Carl Ledbetter sold 30,145 shares of the company’s stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $72.86, for a total transaction of $2,196,364.70. Following the completion of the sale, the director now owns 1,166,648 shares of the company’s stock, valued at approximately $85,001,973.28. The disclosure for this sale can be found here. In the last 90 days, insiders sold 691,210 shares of company stock worth $53,578,881. 12.83% of the stock is owned by corporate 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.