Earnings Previews: Cloudflare, Enbridge, Lyft, PayPal

Of 27 brokerages covering Cloudflare stock, 13 have a Buy or Strong Buy rating and 13 more have Hold ratings. At a recent share price of around $58.00, the implied upside on a median price target of $59.00 is 1.7%. The upside potential is 63.8% based on a high price target of $95.00.

Fourth-quarter revenue is forecast at $274.17 million, which would be up 8.0% sequentially and by 41.6% year over year. Analysts expect the company to post EPS of $0.04, down 25.8% sequentially, and better than the break-even quarter last year. For the full year, Cloudflare is expected to report EPS of $0.11, compared to last year’s loss of $0.05 per share, on sales of $943.69 million, up 48.5%.

Cloudflare stock trades at about 388.4 to estimated 2023 earnings of $0.15 and 248 times estimated 2024 earnings of $0.24 per share. The stock’s 52-week trading range is $37.37 to $132.45. Cloudflare does not pay a dividend, and total shareholder return for the past year was negative 45.5%.


Energy infrastructure giant Enbridge Inc. (NYSE: ENB) has seen its share price drop by about 6% over the past 12 months. Look for Enbridge to post its results on Friday morning.

The Calgary-based company is trying to shepherd a $500 million tunnel project underneath the Straits of Mackinac that separates Michigan’s upper and lower peninsulas. In 2018, the company’s crude oil pipeline to the East Coast, known as Line 5, was damaged when it was hit by an anchor from a passing freighter, effectively shutting down the pipeline. Opposition to the Michigan pipeline is strong, and, in 2019, Michigan Governor Gretchen Whitmer ordered Enbridge to cease operations on Line 5, an order the company has ignored. The state has sued the company, and the case is being heard in federal court.

Of 23 brokerages covering the stock, 11 have a Buy or Strong Buy rating and the other 12 rate it at Hold. At a price of around $41.00 a share, the upside potential based on a median price target of $42.35 is 3.3%. At the high price target of $48.30, the upside potential is about 17.8%.

Analysts are forecasting fourth-quarter revenue of $10.33 billion, up 23.3% sequentially and 4.3% higher year over year. Adjusted EPS are forecast at $0.55, up 12.4% sequentially and up a penny year over year. For the full 2022 fiscal year, analysts expect Enbridge to report EPS of $2.20, up 1.3%, on sales of $39.64 billion, up 6.5%.

Enbridge stock trades at 18.6 times expected 2022 EPS, 17.9 times estimated 2023 earnings of $2.27 and 17.8 times estimated 2024 earnings of $2.29 per share. The stock’s 52-week range is $35.02 to $47.67, and the company pays an annual dividend of $2.61 (yield of 6.41%). Total shareholder return over the past year was essentially zero.


Ride-hailing operator Lyft Inc. (NASDAQ: LYFT) has suffered a share price decline of more than 50% over the past year, much worse than rival Uber’s decline of some 7% (not including a boost Wednesday morning after reporting earnings). For 2023 to date, however, Lyft stock is up nearly 63%, sharply more than Uber’s jump of 41%. Lyft pays its drivers more and charges its riders more than Uber, and both face regulatory risk in a California court ruling that could reclassify drivers as employees, not contractors. Lyft reports results after markets close on Thursday.

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