Cloudflare (NYSE:NET) Releases Q3 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its third quarter earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of $0.18 for the period, compared to the consensus 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 NET stock traded up $5.06 during mid-day trading on Friday, hitting $79.46. The stock had a trading volume of 10,348,642 shares, compared to its average volume of 2,542,594. The company’s 50-day simple moving average is $77.83 and its 200-day simple moving average is $85.22. The company has a debt-to-equity ratio of 1.61, a current ratio of 3.51 and a quick ratio of 3.51. The firm has a market cap of $27.00 billion, a PE ratio of -149.92 and a beta of 1.10. Cloudflare has a fifty-two week low of $53.88 and a fifty-two week high of $116.00.

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

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on NET shares. Morgan Stanley reissued an equal weight rating and issued a $92.00 target price on shares of Cloudflare in a research report on Monday, June 17th. JMP Securities reissued a market outperform rating and issued a $120.00 target price on shares of Cloudflare in a research report on Tuesday, May 14th. Wolfe Research started coverage on shares of Cloudflare in a research note on Tuesday, July 16th. They set a peer perform rating for the company. Cantor Fitzgerald boosted their price objective on shares of Cloudflare from $80.00 to $85.00 and gave the stock a neutral rating in a research note on Friday. Finally, Guggenheim boosted their price objective on shares of Cloudflare from $50.00 to $57.00 and gave the stock a sell rating in a research note on Friday. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and ten have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of Hold and a consensus price target of $92.08.

Insider Activity

In other Cloudflare news, COO Michelle Zatlyn sold 25,640 shares of the business’s stock in a transaction on Wednesday, July 3rd. The stock was sold at an average price of $85.28, for a total value of $2,186,579.20. Following the sale, the chief operating officer now directly owns 211,394 shares in the company, valued at $18,027,680.32. The sale was disclosed in a filing with the SEC, which is accessible through this link. In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction dated Wednesday, May 8th. The stock was sold at an average price of $72.51, for a total value of $3,798,363.84. Following the transaction, the chief executive officer now directly owns 230,612 shares in the company, valued at approximately $16,721,676.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Michelle Zatlyn sold 25,640 shares of the stock in a transaction dated 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 transaction, the chief operating officer now owns 211,394 shares in the company, valued at $18,027,680.32. The disclosure for this sale can be found here. Insiders have sold 691,210 shares of company stock worth $53,578,881 over the last 90 days. 12.83% of the stock is currently 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.