DigitalOcean (NYSE:DOCN) Releases Q4 Earnings Guidance

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

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Barclays raised their target price on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, October 11th. JPMorgan Chase & Co. boosted their price objective on shares of DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday, October 25th. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research report on Tuesday. Piper Sandler decreased their price objective on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a research note on Monday, July 15th. Finally, UBS Group cut their target price on DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research 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 data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $40.56.

DigitalOcean Stock Performance

Shares of NYSE:DOCN opened at $35.86 on Wednesday. DigitalOcean has a one year low of $23.65 and a one year high of $44.80. The company has a 50-day simple moving average of $40.40 and a 200-day simple moving average of $36.66. The stock has a market capitalization of $3.30 billion, a price-to-earnings ratio of 49.81, a PEG ratio of 3.24 and a beta of 1.83.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Monday, November 4th. The company reported $0.52 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.12. The company had revenue of $198.50 million during the quarter, compared to analysts’ expectations of $196.64 million. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. The firm’s revenue for the quarter was up 12.1% on a year-over-year basis. During the same period last year, the firm earned $0.17 EPS. As a group, research analysts forecast 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).