Cloudflare (NYSE:NET) stock is falling on Friday following the release of the cybersecurity company’s earnings report for the first quarter of 2022.
Let’s jump into that earnings report below to see why that’s dragging NET stock down today!
- First off, the Cloudflare earnings report includes adjusted earnings per share of 1 cent.
- That’s barely better than the flat adjusted EPS that Wall Street was expecting.
- It’s also a positive change compared to its adjusted EPS of -3 cents from the same time last year.
- Revenue for the first quarter of 2022 comes in at $212.16 million.
- That’s a slight miss next to analysts’ revenue estimate of $212.17 million.
- However, it is a 54% year-over-year increase compared to $138.05 million.
- More bad news comes from the company’s outlook for the second quarter of 2022.
- This has it expecting adjusted EPS to be -1 cent or flat.
- Wall Street is looking for flat earnings in Q 20222.
- Cloudflare’s outlook for the full year of 2022 includes adjusted EPS between 3 cents and 4 cents.
- Wall Street is expecting the company to report adjusted EPS of 3 cents per share for the year.
- Q2 2022 revenue estimates range from $226.5 million to $227.5 million.
- For comparison, analysts are looking for revenue of $219.06 million for the period.
- Extending that to the full year of 2022, Cloudflare is hoping for revenue ranging from $955 million to $959 million.
- That’s better than the $935.17 million that analysts are estimating in the current year.
- Heavy trading follows NET stock today with some 11 million shares on the move as of this writing.
- That’s above its daily average trading volume of about 5.3 million shares.
NET stock is down 14.5% as of Friday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.