DigitalOcean (NYSE:DOCN) Updates Q4 Earnings Guidance

DigitalOcean (NYSE:DOCN) updated its fourth quarter earnings guidance on Monday. The company provided earnings per share guidance of $0.27-0.32 for the period, compared to the consensus earnings per share 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 Performance

Shares of DOCN traded up $0.27 during midday trading on Thursday, hitting $39.09. 367,929 shares of the company traded hands, compared to its average volume of 1,259,357. DigitalOcean has a 52 week low of $24.07 and a 52 week high of $44.80. The stock has a market cap of $3.60 billion, a price-to-earnings ratio of 45.67, a PEG ratio of 2.80 and a beta of 1.83. The firm has a 50 day moving average of $40.43 and a 200-day moving average of $36.70.

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

Analyst Upgrades and Downgrades

DOCN has been the subject of several research reports. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research report on Tuesday. Canaccord Genuity Group upped their price target on DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, October 4th. JPMorgan Chase & Co. upped their target price on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. 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. Finally, Barclays raised their price objective on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a report on Friday, October 11th. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price 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).