DigitalOcean (NYSE:DOCN) Updates Q4 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its fourth quarter earnings guidance on Monday. 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.

DigitalOcean Stock Up 3.2 %

DOCN opened at $40.83 on Monday. DigitalOcean has a twelve month low of $20.21 and a twelve month high of $44.80. The company’s 50-day moving average price is $40.45 and its two-hundred day moving average price is $36.64. The stock has a market cap of $3.76 billion, a price-to-earnings ratio of 56.71, a PEG ratio of 3.14 and a beta of 1.83.

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

Wall Street Analysts Forecast Growth

A number of analysts recently commented on DOCN shares. UBS Group dropped their price target on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research note on Friday, August 9th. Barclays raised 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. Piper Sandler decreased their price objective on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a research note on Monday, July 15th. 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, Canaccord Genuity Group lifted their target price on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a report on Friday, October 4th. Five investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. Based on data from 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).