DigitalOcean (NYSE:DOCN) Issues Q4 Earnings Guidance

DigitalOcean (NYSE:DOCN) issued an update on its fourth quarter earnings guidance on Monday morning. The company provided EPS guidance of $0.27-0.32 for the period, compared to the consensus EPS 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.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Stifel Nicolaus lifted their price target on shares of DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research report on Friday, August 9th. 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. Barclays increased their price target on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a report on Friday, October 11th. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a report on Tuesday. Finally, UBS Group lowered their target price 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. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $40.56.

DigitalOcean Price Performance

Shares of NYSE:DOCN opened at $35.86 on Wednesday. The firm has a market capitalization of $3.30 billion, a PE ratio of 49.81, a price-to-earnings-growth ratio of 3.24 and a beta of 1.83. DigitalOcean has a 1 year low of $23.65 and a 1 year high of $44.80. The firm’s 50-day moving average is $40.40 and its two-hundred day moving average is $36.66.

DigitalOcean (NYSE:DOCN) last released its earnings results on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.12. The company had revenue of $198.50 million for the quarter, compared to analyst estimates of $196.64 million. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The firm’s quarterly revenue was up 12.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.17 EPS. Analysts expect that DigitalOcean will post 0.86 EPS for the current fiscal 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).