DigitalOcean (NYSE:DOCN) Issues FY24 Earnings Guidance

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

Shares of NYSE DOCN traded up $0.27 during midday trading on Thursday, reaching $39.09. The stock had a trading volume of 367,929 shares, compared to its average volume of 1,259,357. The stock has a 50-day moving average of $40.43 and a 200-day moving average of $36.70. The company has a market capitalization of $3.60 billion, a price-to-earnings ratio of 45.67, a price-to-earnings-growth ratio of 2.80 and a beta of 1.83. DigitalOcean has a 12-month low of $24.07 and a 12-month high of $44.80.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Monday, November 4th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.12. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The company had revenue of $198.50 million during the quarter, compared to analysts’ expectations of $196.64 million. During the same period last year, the company posted $0.17 earnings per share. DigitalOcean’s quarterly revenue was up 12.1% on a year-over-year basis. As a group, analysts forecast that DigitalOcean will post 0.86 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a report on Tuesday. 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. UBS Group decreased their price objective on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a report on Friday, August 9th. Barclays lifted their price objective on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th. Finally, Stifel Nicolaus lifted their price objective on shares of DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a report on Friday, August 9th. Five equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat, DigitalOcean 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).