DigitalOcean (NYSE:DOCN) Issues FY 2024 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its FY 2024 earnings guidance on Monday. The company provided EPS guidance of 1.700-1.750 for the period, compared to the consensus EPS estimate of 1.670. The company issued revenue guidance of $775.0 million-$777.0 million, compared to the consensus revenue estimate of $773.9 million. DigitalOcean also updated its FY24 guidance to $1.70-1.75 EPS.

DigitalOcean Stock Down 13.5 %

Shares of NYSE DOCN opened at $35.33 on Tuesday. DigitalOcean has a 52-week low of $23.65 and a 52-week high of $44.80. The company has a market cap of $3.25 billion, a PE ratio of 49.07, a PEG ratio of 3.24 and a beta of 1.83. The firm’s 50-day moving average price is $40.40 and its 200-day moving average price is $36.66.

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

Analysts Set New Price Targets

Several research analysts have weighed in on DOCN shares. Stifel Nicolaus upped their price target on DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a research note on Friday, August 9th. UBS Group cut their price target on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a report on Friday, August 9th. Piper Sandler cut their price target on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a report on Monday, July 15th. Canaccord Genuity Group lifted 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. Finally, JPMorgan Chase & Co. lifted their price objective on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Five investment 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 stock presently has a consensus rating of “Moderate Buy” and an average price target of $40.56.

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).