DigitalOcean (NYSE:DOCN) Updates FY24 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its FY24 earnings guidance on Monday morning. The company provided earnings per share (EPS) guidance of $1.70-1.75 for the period, compared to the consensus 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.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on DOCN shares. Canaccord Genuity Group upped their price target on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, October 4th. JPMorgan Chase & Co. upped their target price on shares of DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday, October 25th. UBS Group cut their price target on DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a report on Friday, August 9th. Stifel Nicolaus increased their price objective on DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a report on Friday, August 9th. Finally, Piper Sandler cut their target price on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a research note on Monday, July 15th. Five analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $40.56.

DigitalOcean Stock Down 11.2 %

DigitalOcean stock traded down $4.58 during midday trading on Monday, hitting $36.25. The company’s stock had a trading volume of 1,401,989 shares, compared to its average volume of 1,246,932. DigitalOcean has a 12 month low of $23.65 and a 12 month high of $44.80. The company has a market capitalization of $3.34 billion, a PE ratio of 50.81, a price-to-earnings-growth ratio of 3.14 and a beta of 1.83. The stock’s 50-day moving average price is $40.45 and its 200-day moving average price is $36.64.

DigitalOcean (NYSE:DOCN) last released its earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.09. The business had revenue of $192.00 million for the quarter, compared to the consensus estimate of $188.63 million. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The business’s revenue for the quarter was up 13.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.11 EPS. As a group, equities analysts anticipate that DigitalOcean will post 0.86 EPS for the current year.

About DigitalOcean

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).