DigitalOcean (NYSE:DOCN) Releases Q4 Earnings Guidance

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

DigitalOcean Price Performance

Shares of NYSE:DOCN opened at $34.83 on Tuesday. The firm has a market capitalization of $3.21 billion, a PE ratio of 49.07, a P/E/G ratio of 3.24 and a beta of 1.83. DigitalOcean has a 12 month low of $23.65 and a 12 month high of $44.80. The business has a 50-day moving average of $40.40 and a two-hundred day moving average of $36.66.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Monday, November 4th. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.40 by $0.12. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The firm had revenue of $198.50 million for the quarter, compared to analyst estimates of $196.64 million. During the same quarter last year, the firm posted $0.17 earnings per share. DigitalOcean’s revenue for the quarter was up 12.1% compared to the same quarter last year. As a group, research analysts anticipate that DigitalOcean will post 0.86 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Stifel Nicolaus increased their price target on DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a report on Friday, August 9th. UBS Group reduced their price target on DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research report on Friday, August 9th. Canaccord Genuity Group increased their price objective on shares of DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, October 4th. Piper Sandler reduced their target price on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a research report on Monday, July 15th. Finally, JPMorgan Chase & Co. raised their price target on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Five analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus 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).