DigitalOcean (NASDAQ:DOCN) Updates FY 2024 Earnings Guidance

DigitalOcean (NASDAQ:DOCN) issued an update on its FY 2024 earnings guidance on Thursday morning. The company provided earnings per share guidance of 1.600-1.700 for the period, compared to the consensus earnings per share estimate of 1.640. The company issued revenue guidance of $770.0 million-$775.0 million, compared to the consensus revenue estimate of $769.7 million. DigitalOcean also updated its FY24 guidance to $1.60-$1.70 EPS.

DigitalOcean Stock Up 5.1 %

Shares of NASDAQ DOCN traded up $1.40 during midday trading on Thursday, reaching $29.10. 3,575,239 shares of the company’s stock traded hands, compared to its average volume of 1,246,779. The stock’s 50 day simple moving average is $33.83 and its 200-day simple moving average is $35.68. DigitalOcean has a one year low of $19.39 and a one year high of $41.58. The company has a market cap of $2.65 billion, a price-to-earnings ratio of 52.25, a P/E/G ratio of 3.01 and a beta of 1.81.

DigitalOcean (NASDAQ:DOCN) last announced its earnings results on Friday, May 10th. The company reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.06. The company had revenue of $184.73 million during the quarter, compared to the consensus estimate of $182.70 million. DigitalOcean had a net margin of 7.01% and a negative return on equity of 26.29%. Equities analysts predict that DigitalOcean will post 0.78 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on DOCN. Piper Sandler lowered their target price 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. Needham & Company LLC restated a hold rating on shares of DigitalOcean in a research note on Monday, May 13th. JMP Securities reiterated a market outperform rating and set a $47.00 price objective on shares of DigitalOcean in a research note on Monday, May 13th. Canaccord Genuity Group lifted their price objective on shares of DigitalOcean from $41.00 to $42.00 and gave the stock a buy rating in a research note on Monday, May 13th. Finally, UBS Group began coverage on shares of DigitalOcean in a research note on Wednesday, May 22nd. They set a neutral rating and a $40.00 price objective for the company. One research analyst has rated the stock with a sell rating, four have issued a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, DigitalOcean currently has a consensus rating of Hold and an average target price of $37.78.

Insider Buying and Selling

In related news, Director Amy Butte sold 5,220 shares of the firm’s stock in a transaction on Friday, June 7th. The shares were sold at an average price of $37.46, for a total transaction of $195,541.20. Following the completion of the transaction, the director now owns 36,417 shares of the company’s stock, valued at $1,364,180.82. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.74% of the stock is currently owned by corporate insiders.

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).