Application performance monitoring software provider Dynatrace (NYSE: DT) will be announcing earnings results tomorrow before the bell. Here’s what to look for.
Dynatrace beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $436.2 million, up 19.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Dynatrace a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Dynatrace’s revenue to grow 14.1% year on year to $434.7 million, slowing from the 21.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dynatrace has missed Wall Street’s revenue estimates twice over the last two years.
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 24.6%, beating analysts’ expectations by 2.8%, and Fastly reported revenues up 8.2%, topping estimates by 4.8%. Datadog’s stock price was unchanged after the resultswhile Fastly was up 26.8%.
Read our full analysis of Datadog’s results here and Fastly’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 18.6% on average over the last month. Dynatrace is up 17.5% during the same time and is heading into earnings with an average analyst price target of $61.22 (compared to the current share price of $50.98).
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