Will Cloudflare (NET) Beat Estimates Again in Its Next Earnings Report?

Core Viewpoint - Cloudflare (NET) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a solid history of exceeding expectations [1]. Company Performance - Cloudflare has a strong track record of surpassing earnings estimates, particularly in the last two quarters, with an average surprise of 8.33% [2]. - In the most recent quarter, Cloudflare reported earnings of $0.19 per share against an expectation of$0.18, resulting in a surprise of 5.56%. In the previous quarter, it reported $0.20 per share compared to a consensus estimate of$0.18, achieving a surprise of 11.11% [3]. Earnings Estimates - Recent changes in earnings estimates for Cloudflare have been favorable, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that stocks like Cloudflare have a nearly 70% chance of producing a positive surprise [6]. Earnings ESP Metric - Cloudflare currently has an Earnings ESP of +6.06%, indicating that analysts have recently become more optimistic about the company's earnings prospects [8]. - A positive Earnings ESP, when paired with a Zacks Rank of 3, suggests that another earnings beat may be imminent [8]. Importance of Earnings ESP - The Earnings ESP metric is crucial for predicting earnings performance, as it compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7]. - While many companies may beat consensus EPS estimates, the Earnings ESP is a key factor in assessing the likelihood of stock price movement post-earnings release [9].