DigitalOcean (NYSE:DOCN) Updates 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 Performance

NYSE:DOCN traded down $4.58 during trading hours on Monday, hitting $36.25. 1,401,989 shares of the company’s stock traded hands, compared to its average volume of 1,246,932. The stock’s fifty day moving average price is $40.45 and its two-hundred day moving average price is $36.64. The firm has a market cap of $3.34 billion, a P/E ratio of 50.81, a P/E/G ratio of 3.14 and a beta of 1.83. DigitalOcean has a twelve month low of $23.65 and a twelve month high of $44.80.

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

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Barclays boosted their price target on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, October 11th. Canaccord Genuity Group upped their target price on DigitalOcean from $42.00 to $48.00 and gave the stock 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 on the stock in a report on Monday, July 15th. Stifel Nicolaus boosted their price objective on DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a research report on Friday, August 9th. Finally, UBS Group reduced their price target 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. Five analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat, DigitalOcean has a consensus rating of “Moderate Buy” and an average 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).