DigitalOcean (NYSE:DOCN) Releases FY24 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY24 earnings guidance on Monday. The company provided earnings per share guidance of $1.70-1.75 for the period, compared to the consensus earnings per share estimate of $1.67. The company issued revenue guidance of $775-777 million, compared to the consensus revenue estimate of $773.92 million. DigitalOcean also updated its FY 2024 guidance to 1.700-1.750 EPS.

DigitalOcean Stock Up 3.2 %

Shares of DOCN stock opened at $40.83 on Monday. The firm has a market cap of $3.76 billion, a price-to-earnings ratio of 56.71, a PEG ratio of 3.14 and a beta of 1.83. DigitalOcean has a 52-week low of $20.21 and a 52-week high of $44.80. The company’s 50 day moving average is $40.45 and its 200 day moving average is $36.64.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Thursday, August 8th. The company reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.39 by $0.09. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. The business had revenue of $192.00 million for the quarter, compared to the consensus estimate of $188.63 million. During the same period last year, the business posted $0.11 EPS. The business’s revenue was up 13.1% compared to the same quarter last year. Analysts anticipate that DigitalOcean will post 0.86 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

DOCN has been the subject of several recent analyst reports. UBS Group reduced their price objective on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a research note on Friday, August 9th. JPMorgan Chase & Co. increased their price objective on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Canaccord Genuity Group upped their target price on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, October 4th. Piper Sandler lowered their price target on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a report on Monday, July 15th. Finally, Barclays increased their price objective 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. Five analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $40.56.

DigitalOcean Company Profile

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).