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Set to unveil its fourth-quarter earnings on Thursday, February 8th, after market close, Cloudfare (NYSE:NET) is attracting attention with analysts projecting a year-over-year rise in both revenues and earnings per share. Expectations are pegged at $0.12 for earnings per share on revenues of $353 million.
The software company is poised to surpass market estimates for the fourth quarter, banking on companies’ heightened investment in cloud infrastructure. Based in San Francisco, California, Cloudflare (NET) delivers a range of products including cloud-based security frameworks, developer platforms for building and deploying serverless applications, and networking security services.
Anticipation looms as analysts express optimism about the company’s performance, fueled by the surge in activity across cloud hyperscalers such as Amazon Web Services (AMZN), Microsoft’s (MSFT) Azure, and Alphabet’s (GOOGL) Google Cloud Platform.
Investment firm Oppenheimer underlines this optimism, noting, “We think there is significant upside to NET’s earnings and 1Q 2024 guidance on Thursday and believe the company can return to mid to high 30s revenue growth rates.”
Cloudfare’s (NET) recently introduced products are expected to make a notable impact on revenue in the second half of 2024. This expectation is driven by the burgeoning adoption of both new and existing products, such as KV Asset Handler and Workers AI, which have surpassed initial projections.
On Wall Street, SA analyst Richard Durant acknowledges the company’s resurgence, stating, “The company’s growth is reaccelerating on the back of a stable macro environment, product expansion, and a normalization of internet traffic growth.”
Over the last three months, Cloudfare (NET) has witnessed significant revisions to its estimates. Notably, the earnings per share estimates have seen upward revisions 21 times, while revenue estimates show one upward move against 21 downward adjustments.
Seeking Alpha analysts at large consider NET a Hold, a position that is consistent with the average Wall Street rating and SA Quant rating of Hold.
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