Earnings Previews: Cloudflare, Livent, Occidental Petroleum

More than 1,500 companies are expected to report quarterly earnings this week. Of three in our watch list for Tuesday afternoon, two (Activision Blizzard and Lyft) beat on both revenue and profits while the other (T-Mobile) missed on revenue. Three companies we previewed that reported early Wednesday (Cenovus Energy, Discovery and Norwegian Cruise Lines) posted mixed results.

Tuesday, we previewed five companies set to report results after markets close Wednesday (Albemarle, Fisker, MGM Resorts, Qualcomm and Skillz) and three more set to report results before markets open Thursday (Barrick Gold, Moderna and Nikola).

Earlier in the morning, we previewed four stocks set to report results after markets close on Thursday: Airbnb, Peloton, Square and Uber. Here’s a look at three more companies scheduled to report results after markets close on Thursday. On Thursday, we’ll post our look at two firms reporting Friday morning.

Cloudflare

Over the past 12 months, shares of Cloudflare Inc. (NYSE: NET) have added 272%. The cloud security provider has adopted a zero-trust strategy that treats all requests for access as threats until those requests are proven to be secure. The company also supplies edge services that bring internet content closer to users, driving quicker response times. The company has guided a revenue jump of 45% year over year, the lingering effects of the pandemic notwithstanding.

There are no Sell or Strong Sell ratings on Cloudflare stock. Of 18 brokerages covering the company, nine have a Hold rating and the other nine have assigned Buy or Strong Buy ratings. At a recent price of around $193.90, the shares trade above the median price target of $135 and have an upside potential of 3.1% to a high price target of $200.

Third-quarter revenue is forecast at $165.65 million, which would be up 8.7% sequentially and 45% higher year over year. Analysts expect the company to post a loss per share of $0.04 in the quarter, compared to a loss of $0.02 in the prior quarter. For the full year, Cloudfare is expected to report a loss per share of $0.12, flat year over year, on sales of $631.97 million, up 46.6%.

The company is not expected to post a profit in 2021, 2022 or 2023. The stock trades at an enterprise value-to-sales multiple of 95.1 for 2021, 71.0 for 2022 and 54.8 for 2023. The stock’s 52-week range is $54.30 to $196.80. Cloudflare does not pay a dividend.

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