Cloudflare (NYSE:NET) Issues Q3 Earnings Guidance

Cloudflare (NYSE:NET) issued an update on its third quarter earnings guidance on Thursday morning. The company provided EPS guidance of $0.18 for the period, compared to the consensus EPS 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 trading on Friday, hitting $79.46. 10,348,642 shares of the company traded hands, compared to its average volume of 2,542,594. The stock has a market capitalization of $27.00 billion, a price-to-earnings ratio of -149.92 and a beta of 1.10. The business’s fifty day moving average is $77.83 and its 200-day moving average is $85.22. Cloudflare has a one year low of $53.88 and a one year high of $116.00. The company has a quick ratio of 3.51, a current ratio of 3.51 and a debt-to-equity ratio of 1.61.

Cloudflare (NYSE:NET) last issued its quarterly earnings data on Thursday, May 2nd. The company reported ($0.03) earnings per share (EPS) for the quarter, topping 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 business had revenue of $378.60 million during the quarter, compared to analyst estimates of $372.93 million. As a group, equities analysts predict that Cloudflare will post -0.19 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. JMP Securities reissued a market outperform rating and issued a $120.00 price objective on shares of Cloudflare in a report on Tuesday, May 14th. Oppenheimer decreased their price objective on Cloudflare from $122.00 to $110.00 and set an outperform rating for the company in a report on Friday, May 3rd. Morgan Stanley reissued an equal weight rating and issued a $92.00 price objective on shares of Cloudflare in a report on Monday, June 17th. JPMorgan Chase & Co. decreased their price objective on Cloudflare from $90.00 to $80.00 and set a neutral rating for the company in a report on Friday, May 3rd. Finally, The Goldman Sachs Group cut their target price on Cloudflare from $77.00 to $68.00 and set a sell rating for the company in a research report on Tuesday, June 4th. Three equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of Hold and an average target price of $92.08.

Insider Buying and Selling at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction on Monday, May 6th. The shares were sold at an average price of $74.67, for a total value of $3,911,513.28. Following the transaction, the chief executive officer now directly owns 230,612 shares of the company’s stock, valued at $17,219,798.04. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In other news, Director Carl Ledbetter sold 30,145 shares of the company’s stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $72.86, for a total value of $2,196,364.70. Following the transaction, the director now directly owns 1,166,648 shares of the company’s stock, valued at $85,001,973.28. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction on Monday, May 6th. The stock was sold at an average price of $74.67, for a total transaction of $3,911,513.28. Following the completion of the transaction, the chief executive officer now directly owns 230,612 shares in the company, valued at $17,219,798.04. The disclosure for this sale can be found here. Insiders have sold a total of 691,210 shares of company stock valued at $53,578,881 in the last three months. 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.