Cloudflare: Q2 Earnings Snapshot
The San Francisco-based company said it had a loss of 15 cents per share. Earnings, adjusted for one-time gains and costs, came to 21 cents per share.
The results exceeded Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 18 cents per share.
The web security and content delivery company posted revenue of $512.3 million in the period, also topping Street forecasts. Eleven analysts surveyed by Zacks expected $500.7 million.
The company said it expects revenue in the range of $543.5 million to $544.5 million for the fiscal third quarter.
Cloudflare expects full-year earnings in the range of 85 cents to 86 cents per share, with revenue ranging from $2.11 billion to $2.12 billion.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
36 minutes ago
- The Hill
From Laos to Brazil, Trump's tariffs leave a lot of losers. But even the winners will pay a price
WASHINGTON (AP) — President Donald Trump's tariff onslaught this week left a lot of losers – from small, poor countries like Laos and Algeria to wealthy U.S. trading partners like Canada and Switzerland. They're now facing especially hefty taxes – tariffs – on the products they export to the United States starting Aug. 7. The closest thing to winners may be the countries that caved to Trump's demands — and avoided even more pain. But it's unclear whether anyone will be able to claim victory in the long run — even the United States, the intended beneficiary of Trump's protectionist policies. 'In many respects, everybody's a loser here,'' said Barry Appleton, co-director of the Center for International Law at the New York Law School. Barely six months after he returned to the White House, Trump has demolished the old global economic order. Gone is one built on agreed-upon rules. In its place is a system in which Trump himself sets the rules, using America's enormous economic power to punish countries that won't agree to one-sided trade deals and extracting huge concessions from the ones that do. 'The biggest winner is Trump,' said Alan Wolff, a former U.S. trade official and deputy director-general at the World Trade Organization. 'He bet that he could get other countries to the table on the basis of threats, and he succeeded – dramatically.'' Everything goes back to what Trump calls 'Liberation Day'' – April 2 – when the president announced 'reciprocal'' taxes of up to 50% on imports from countries with which the United States ran trade deficits and 10% 'baseline'' taxes on almost everyone else. He invoked a 1977 law to declare the trade deficit a national emergency that justified his sweeping import taxes. That allowed him to bypass Congress, which traditionally has had authority over taxes, including tariffs — all of which is now being challenged in court. Winners will still pay higher tariffs than before Trump took office Trump retreated temporarily after his Liberation Day announcement triggered a rout in financial markets and suspended the reciprocal tariffs for 90 days to give countries a chance to negotiate. Eventually, some of them did, caving to Trump's demands to pay what four months ago would have seemed unthinkably high tariffs for the privilege of continuing to sell into the vast American market. The United Kingdom agreed to 10% tariffs on its exports to the United States — up from 1.3% before Trump amped up his trade war with the world. The U.S. demanded concessions even though it had run a trade surplus, not a deficit, with the UK for 19 straight years. The European Union and Japan accepted U.S. tariffs of 15%. Those are much higher than the low single-digit rates they paid last year — but lower than the tariffs he was threatening (30% on the EU and 25% on Japan). Also cutting deals with Trump and agreeing to hefty tariffs were Pakistan, South Korea, Vietnam, Indonesia and the Philippines. Even countries that saw their tariffs lowered from April without reaching a deal are still paying much higher tariffs than before Trump took office. Angola's tariff, for instance, dropped to 15% from 32% in April, but in 2022 it was less than 1.5%. And while Trump administration cut Taiwan's tariff to 20% from 32% in April, the pain will still be felt. '20% from the beginning has not been our goal, we hope that in further negotiations we will get a more beneficial and more reasonable tax rate,' Taiwan's president Lai Ching-te told reporters in Taipei Friday. Trump also agreed to reduce the tariff on the tiny southern African kingdom of Lesotho to 15% from the 50% he'd announced in April, but the damage may already have been done there. Bashing Brazil, clobbering Canada, shellacking the Swiss Countries that didn't knuckle under — and those that found other ways to incur Trump's wrath — got hit harder. Even some of the poor were not spared. Laos' annual economic output comes to $2,100 per person and Algeria's $5,600 — versus America's $75,000. Nonetheless, Laos got rocked with a 40% tariff and Algeria with a 30% levy. Trump slammed Brazil with a 50% import tax largely because he didn't like the way it was treating former Brazilian President Jair Bolsonaro, who is facing trial for trying to lose his electoral defeat in 2022. Never mind that the U.S. has exported more to Brazil than it's imported every year since 2007. Trump's decision to plaster a 35% tariff on longstanding U.S. ally Canada was partly designed to threaten Ottawa for saying it would recognize a Palestinian state. Trump is a staunch supporter of Israeli Prime Minister Benjamin Netanyahu. Switzerland was clobbered with a 39% import tax — even higher than the 31% Trump originally announced on April 2. 'The Swiss probably wish that they had camped in Washington' to make a deal, said Wolff, now senior fellow at the Peterson Institute for International Economics. 'They're clearly not at all happy.'' Fortunes may change if Trump's tariffs are upended in court. Five American businesses and 12 states are suing the president, arguing that his Liberation Day tariffs exceeded his authority under the 1977 law. In May, the U.S. Court of International Trade, a specialized court in New York, agreed and blocked the tariffs, although the government was allowed to continue collecting them while its appeal wend its way through the legal system, and may likely end up at the U.S. Supreme Court. In a hearing Thursday, the judges on the U.S. Court of Appeals for the Federal Circuit sounded skeptical about Trump's justifications for the tariffs. 'If (the tariffs) get struck down, then maybe Brazil's a winner and not a loser,'' Appleton said. Paying more for knapsacks and video games Trump portrays his tariffs as a tax on foreign countries. But they are actually paid by import companies in the U.S. who try to pass along the cost to their customers via higher prices. True, tariffs can hurt other countries by forcing their exporters to cut prices and sacrifice profits — or risk losing market share in the United States. But economists at Goldman Sachs estimate that overseas exporters have absorbed just one-fifth of the rising costs from tariffs, while Americans and U.S. businesses have picked up the most of the tab. Walmart, Procter & Gamble, Ford, Best Buy, Adidas, Nike, Mattel and Stanley Black & Decker, have all hiked prices due to U.S. tariffs 'This is a consumption tax, so it disproportionately affects those who have lower incomes,' Appleton said. 'Sneakers, knapsacks … your appliances are going to go up. Your TV and electronics are going to go up. Your video game devices, consoles are going to up because none of those are made in America.'' Trump's trade war has pushed the average U.S. tariff from 2.5% at the start of 2025 to 18.3% now, the highest since 1934, according to the Budget Lab at Yale University. And that will impose a $2,400 cost on the average household, the lab estimates. 'The U.S. consumer's a big loser,″ Wolff said.
San Francisco Chronicle
36 minutes ago
- San Francisco Chronicle
From Laos to Brazil, Trump's tariffs leave a lot of losers. But even the winners will pay a price
WASHINGTON (AP) — President Donald Trump's tariff onslaught this week left a lot of losers – from small, poor countries like Laos and Algeria to wealthy U.S. trading partners like Canada and Switzerland. They're now facing especially hefty taxes – tariffs – on the products they export to the United States starting Aug. 7. The closest thing to winners may be the countries that caved to Trump's demands — and avoided even more pain. But it's unclear whether anyone will be able to claim victory in the long run — even the United States, the intended beneficiary of Trump's protectionist policies. 'In many respects, everybody's a loser here,'' said Barry Appleton, co-director of the Center for International Law at the New York Law School. Barely six months after he returned to the White House, Trump has demolished the old global economic order. Gone is one built on agreed-upon rules. In its place is a system in which Trump himself sets the rules, using America's enormous economic power to punish countries that won't agree to one-sided trade deals and extracting huge concessions from the ones that do. 'The biggest winner is Trump,' said Alan Wolff, a former U.S. trade official and deputy director-general at the World Trade Organization. 'He bet that he could get other countries to the table on the basis of threats, and he succeeded – dramatically.'' Everything goes back to what Trump calls 'Liberation Day'' – April 2 – when the president announced 'reciprocal'' taxes of up to 50% on imports from countries with which the United States ran trade deficits and 10% 'baseline'' taxes on almost everyone else. He invoked a 1977 law to declare the trade deficit a national emergency that justified his sweeping import taxes. That allowed him to bypass Congress, which traditionally has had authority over taxes, including tariffs — all of which is now being challenged in court. Trump retreated temporarily after his Liberation Day announcement triggered a rout in financial markets and suspended the reciprocal tariffs for 90 days to give countries a chance to negotiate. Eventually, some of them did, caving to Trump's demands to pay what four months ago would have seemed unthinkably high tariffs for the privilege of continuing to sell into the vast American market. The United Kingdom agreed to 10% tariffs on its exports to the United States — up from 1.3% before Trump amped up his trade war with the world. The U.S. demanded concessions even though it had run a trade surplus, not a deficit, with the UK for 19 straight years. The European Union and Japan accepted U.S. tariffs of 15%. Those are much higher than the low single-digit rates they paid last year — but lower than the tariffs he was threatening (30% on the EU and 25% on Japan). Also cutting deals with Trump and agreeing to hefty tariffs were Pakistan, South Korea, Vietnam, Indonesia and the Philippines. Even countries that saw their tariffs lowered from April without reaching a deal are still paying much higher tariffs than before Trump took office. Angola's tariff, for instance, dropped to 15% from 32% in April, but in 2022 it was less than 1.5%. And while Trump administration cut Taiwan's tariff to 20% from 32% in April, the pain will still be felt. '20% from the beginning has not been our goal, we hope that in further negotiations we will get a more beneficial and more reasonable tax rate,' Taiwan's president Lai Ching-te told reporters in Taipei Friday. Trump also agreed to reduce the tariff on the tiny southern African kingdom of Lesotho to 15% from the 50% he'd announced in April, but the damage may already have been done there. Bashing Brazil, clobbering Canada, shellacking the Swiss Countries that didn't knuckle under — and those that found other ways to incur Trump's wrath — got hit harder. Even some of the poor were not spared. Laos' annual economic output comes to $2,100 per person and Algeria's $5,600 — versus America's $75,000. Nonetheless, Laos got rocked with a 40% tariff and Algeria with a 30% levy. Trump slammed Brazil with a 50% import tax largely because he didn't like the way it was treating former Brazilian President Jair Bolsonaro, who is facing trial for trying to lose his electoral defeat in 2022. Never mind that the U.S. has exported more to Brazil than it's imported every year since 2007. Trump's decision to plaster a 35% tariff on longstanding U.S. ally Canada was partly designed to threaten Ottawa for saying it would recognize a Palestinian state. Trump is a staunch supporter of Israeli Prime Minister Benjamin Netanyahu. Switzerland was clobbered with a 39% import tax — even higher than the 31% Trump originally announced on April 2. "The Swiss probably wish that they had camped in Washington'' to make a deal, said Wolff, now senior fellow at the Peterson Institute for International Economics. "They're clearly not at all happy.'' Fortunes may change if Trump's tariffs are upended in court. Five American businesses and 12 states are suing the president, arguing that his Liberation Day tariffs exceeded his authority under the 1977 law. In May, the U.S. Court of International Trade, a specialized court in New York, agreed and blocked the tariffs, although the government was allowed to continue collecting them while its appeal wend its way through the legal system, and may likely end up at the U.S. Supreme Court. In a hearing Thursday, the judges on the U.S. Court of Appeals for the Federal Circuit sounded skeptical about Trump's justifications for the tariffs. 'If (the tariffs) get struck down, then maybe Brazil's a winner and not a loser,'' Appleton said. Paying more for knapsacks and video games Trump portrays his tariffs as a tax on foreign countries. But they are actually paid by import companies in the U.S. who try to pass along the cost to their customers via higher prices. True, tariffs can hurt other countries by forcing their exporters to cut prices and sacrifice profits — or risk losing market share in the United States. But economists at Goldman Sachs estimate that overseas exporters have absorbed just one-fifth of the rising costs from tariffs, while Americans and U.S. businesses have picked up the most of the tab. Walmart, Procter & Gamble, Ford, Best Buy, Adidas, Nike, Mattel and Stanley Black & Decker, have all hiked prices due to U.S. tariffs "This is a consumption tax, so it disproportionately affects those who have lower incomes,'' Appleton said. 'Sneakers, knapsacks ... your appliances are going to go up. Your TV and electronics are going to go up. Your video game devices, consoles are going to up because none of those are made in America.'' Trump's trade war has pushed the average U.S. tariff from 2.5% at the start of 2025 to 18.3% now, the highest since 1934, according to the Budget Lab at Yale University. And that will impose a $2,400 cost on the average household, the lab estimates.
an hour ago
Profits drop at Warren Buffett's Berkshire Hathaway as it writes down its Kraft Heinz investment
OMAHA, Neb. -- OMAHA, Neb. (AP) — Warren Buffett's company reported less than half as much profit in the second quarter as it took a $3.76 billion writedown on the value of its stake in Kraft Heinz, as that iconic food producer considers largely undoing the merger that Berkshire Hathaway helped bankroll. Berkshire said it earned $12.37 billion, or $8,601 per Class A share, during the quarter. That's down from $30.248 billion, or $21,122 per Class A share, a year ago, because it recorded a much smaller paper investment gain this year. Berkshire's earnings can swing wildly from quarter to quarter because it has to record the current value of its massive investment portfolio even though it doesn't sell most of the stocks. That's why Buffett has long recommended that investors pay more attention to Berkshire's operating earnings, which exclude those investment gains. Although last year Berkshire did surprise shareholders by selling off a huge chunk of its Apple stake which inflated the investment gains then. By that measure, Berkshire's operating earnings were only down slightly at $11.16 billion, or $7,759.58 per Class A share. That compares with $11.598 billion, or $8,072.16 per Class A share, a year ago. Most of Berkshire's myriad assortment of companies — major insurers like Geico, BNSF railroad, a group of utilities and a collection of manufacturing and retail businesses — generally performed well despite the uncertainty about the economy and President Donald Trump's tariffs. The four analysts surveyed by FactSet Research expected Berkshire to report earnings per Class A share of $7,508.10, so the Omaha, Nebraska-based conglomerate's results were ahead of that. Berkshire owns more than 27% of Kraft Heinz' stock and, for years, it had representatives on the company's board. Buffett has said previously that he believes the company's iconic brands will do well over time, but in hindsight, he overpaid for the investment and underestimated the challenges branded foods face from retailers and the growth of private label products. This spring, Berkshire's representatives resigned from the Kraft Heinz board shortly before the company announced it is exploring strategic options that may include spinning off a large part of its portfolio of brands. Over the years since Berkshire helped Kraft buy Heinz in 2015, the company has been hurt by changing consumer tastes and a shift toward healthier options than Kraft's core collection of processed foods. Buffett's is still sitting on a massive pile of $344.1 billion in cash, although the company's reserves dipped slightly from the $347.7 billion cash it was holding at the end of the first quarter. Buffett told shareholders in May he just isn't finding any attractive deals for companies he understands. Buffett surprised shareholders at the annual meeting when he announced that he plans to give up the CEO title at the end of the year and hand over operations to Vice Chairman Greg Abel, but Buffett will remain Chairman. Berkshire shareholders might be disappointed that the company didn't repurchase any of its shares this quarter, even though the price has fallen more than 12% since just before Buffett announced his retirement. Many investors are watching Berkshire's BNSF closely after rival Union Pacific announced a plan to buy Norfolk Southern earlier this week to create the nation's first transcontinental railroad. The speculation is that BNSF needs to pursue a merger with eastern rail CSX to be able to compete. But CFRA Research analyst Cathy Seifert said it isn't Buffett's style to jump into a deal just because the market thinks he should. Over the decades, he has built Berkshire by finding strong companies selling for less than they are worth. CSX is trading near its 52-week high at $35.01 amid all the deal speculation. 'He wants to do it because he found an undervalued franchise -- not because the market says you need to do a deal,' Seifert said. 'I think one of the reasons why that cash hasn't been deployed is that valuations run through the Berkshire M-and-A model tend to be too rich. But if there's a logical case to be made they'll accept it.' And BNSF appears to be doing fine right now on its own. The railroad recorded a 19% jump in its operating profit this quarter at $1.47 billion as it cut costs and delivered about 1% more shipments.
