Why Cloudflare Stock Is Moving Higher on Friday

Author: Dylan Berman | August 02, 2024 12:21pm

Cloudflare, Inc. (NYSE:NET) shares are trading higher on Friday after the company reported strong second quarter earnings and issued upbeat guidance.

The Details: Cloudflare reported 2024 fiscal year second quarter earnings after the market closed on Thursday. The company reported adjusted EPS of 20 cents beating analyst estimates of 14 cents.

Cloudflare reported sales of $401 million beating analyst estimates of $394.69 million. The reported sales figure represents a 29.99% year-over-year growth. In addition, Cloudflare reported operating income of $57 million and net income of $69.5 million.

The company issued guidance for the third quarter and the 2024 fiscal year. For the third quarter, Cloudflare sees adjusted EPS of 18 cents versus analyst estimates of 15 cents and revenue between $423 million and $424 million versus analyst estimates of $423.61 million.

In terms of the 2024 fiscal year, Cloudflare sees adjusted EPS between 70 cents and 71 cents versus analyst estimates of 63 cents. Also, the company sees revenue between $1.657 billion and $1.659 billion versus analyst estimates of $1.65 billion.

Analyst Changes: Following the earnings report, several analysts issued price target adjustments.

• Needham analyst Alex Henderson reiterated Cloudflare with a Buy and maintained a $135 price target.
• Piper Sandler analyst James Fish maintained Cloudflare with a Neutral and raised the price target from $82 to $83.
• Cantor Fitzgerald analyst Yi Fu Lee maintained Cloudflare with a Neutral and raised the price target from $80 to $85.

See Also: Software Stock SolarWinds Plunges After Q2 Beat, Guidance Boost (UPDATED)

NET Price Action: At the time of publication, Cloudflare stock is trading 7.4% higher at $79.92, according to data from Benzinga Pro.

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Posted In: NET