Cloud observability platform Dynatrace (NYSE: DT) will be reporting earnings this Wednesday morning. Here’s what to look for.
Dynatrace beat analysts’ revenue expectations last quarter, reporting revenues of $515.5 million, up 18.2% year on year. It was a strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and EPS guidance for next quarter beating analysts’ expectations.
Is Dynatrace a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dynatrace’s revenue to grow 17% year on year, in line with the 16.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dynatrace has a history of exceeding Wall Street’s expectations.
Looking at Dynatrace’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Datadog delivered year-on-year revenue growth of 32.2%, beating analysts’ expectations by 4.9%, and F5 reported revenues up 11%, topping estimates by 3.7%. Datadog traded up 38.9% following the results while F5 was also up 8%.
Read our full analysis of Datadog’s results here and F5’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 17.4% on average over the last month. Dynatrace is up 20.1% during the same time and is heading into earnings with an average analyst price target of $47.75 (compared to the current share price of $40.55).
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