DigitalOcean (NYSE:DOCN) Issues Q4 Earnings Guidance

by · The Markets Daily

DigitalOcean (NYSE:DOCN – Get Free Report) updated its fourth quarter earnings guidance on Monday. The company provided earnings per share (EPS) guidance of $0.27-0.32 for the period, compared to the consensus estimate of $0.38. The company issued revenue guidance of $199-201 million, compared to the consensus revenue estimate of $200.16 million. DigitalOcean also updated its FY 2024 guidance to 1.700-1.750 EPS.

Wall Street Analyst Weigh In

A number of analysts have weighed in on DOCN shares. Barclays raised their target price on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research report on Friday, October 11th. Piper Sandler lowered their target price on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a report on Monday, July 15th. Stifel Nicolaus lifted their price target on DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research note on Friday, August 9th. JPMorgan Chase & Co. upped their price objective on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday, October 25th. Finally, UBS Group cut their target price on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research report on Friday, August 9th. Five analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $40.56.

Get Our Latest Stock Report on DOCN

DigitalOcean Stock Up 3.2 %

DigitalOcean stock opened at $40.83 on Monday. The company has a market capitalization of $3.76 billion, a PE ratio of 56.71, a PEG ratio of 3.14 and a beta of 1.83. The firm’s fifty day moving average is $40.45 and its 200 day moving average is $36.64. DigitalOcean has a 12-month low of $20.21 and a 12-month high of $44.80.

DigitalOcean (NYSE:DOCN – Get Free Report) last released its quarterly earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.39 by $0.09. The business had revenue of $192.00 million during the quarter, compared to analyst estimates of $188.63 million. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. DigitalOcean’s quarterly revenue was up 13.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.11 EPS. Sell-side analysts expect that DigitalOcean will post 0.86 EPS for the current fiscal year.

About DigitalOcean

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DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).

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