We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For the fiscal first quarter, non-GAAP earnings are projected at 22 cents per share.
Revenues are estimated to be between $325 million and $328 million, indicating a 22-23% increase year over year, adjusted for forex.
The Zacks Consensus Estimate for fiscal first-quarter earnings has been unchanged at 22 cents per share over the past 30 days, suggesting a 22.22% growth from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $326.89 million, calling for an increase of 22.31% from the year-ago quarter’s reported figure.
Dynatrace’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 19.19%.
Let’s see how things have shaped up prior to the upcoming announcement.
Factors to Note
Dynatrace’s fiscal first-quarter performance is expected to benefit from strong demand for its unified observability and security platform and an expanding clientele.
To drive the next phase of digital business transformation, organizations are leveraging emerging technologies like cloud optimization and generative AI. The global adoption of Dynatrace’s portfolio of solutions by such organizations is likely to have boosted its prospects in the to-be-reported quarter.
Dynatrace’s sophisticated AI capabilities and multi-cloud ecosystem help organizations deliver real-time improved insights and automation. Strong adoption of its unified end-to-end platform for observability and application security are expected to be key catalysts in driving subscription revenues in the fiscal first quarter.
The Zacks Consensus Estimate for fiscal first-quarter Subscription revenues is pegged at $307 million, indicating a 22.8% increase year over year.
The company continues to expand its product portfolio by introducing capabilities and enhancements, which is likely to have been a key growth driver. Continuous investment in its R&D, security expansion and go-to-market initiatives are expected to drive its net expansion rate and contribute to ARR growth.
Dynatrace’s strong partner base is likely to have contributed to its fiscal first-quarter performance. Collaborations with hyperscalers like Google Cloud, Microsoft and Amazon help it create secure enterprise-ready offerings that bring the power of generative AI and predictive analytics to market.
However, persistent macroeconomic headwinds and cautious spending by enterprises are expected to have hurt top-line growth. Tighter budget scrutiny and elongation of sales cycles are expected to have been headwinds in the quarter to be reported.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Dynatrace has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is a company worth considering as our model shows that it has the right combination of elements to beat on earnings in its upcoming release:
Image: Bigstock
Dynatrace (DT) to Report Q1 Earnings: What's in the Cards?
Dynatrace (DT - Free Report) is set to report first-quarter fiscal 2024 results on Aug 2.
For the fiscal first quarter, non-GAAP earnings are projected at 22 cents per share.
Revenues are estimated to be between $325 million and $328 million, indicating a 22-23% increase year over year, adjusted for forex.
The Zacks Consensus Estimate for fiscal first-quarter earnings has been unchanged at 22 cents per share over the past 30 days, suggesting a 22.22% growth from the figure reported in the year-ago quarter.
Dynatrace, Inc. Price and EPS Surprise
Dynatrace, Inc. price-eps-surprise | Dynatrace, Inc. Quote
The consensus mark for revenues is pegged at $326.89 million, calling for an increase of 22.31% from the year-ago quarter’s reported figure.
Dynatrace’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 19.19%.
Let’s see how things have shaped up prior to the upcoming announcement.
Factors to Note
Dynatrace’s fiscal first-quarter performance is expected to benefit from strong demand for its unified observability and security platform and an expanding clientele.
To drive the next phase of digital business transformation, organizations are leveraging emerging technologies like cloud optimization and generative AI. The global adoption of Dynatrace’s portfolio of solutions by such organizations is likely to have boosted its prospects in the to-be-reported quarter.
Dynatrace’s sophisticated AI capabilities and multi-cloud ecosystem help organizations deliver real-time improved insights and automation. Strong adoption of its unified end-to-end platform for observability and application security are expected to be key catalysts in driving subscription revenues in the fiscal first quarter.
The Zacks Consensus Estimate for fiscal first-quarter Subscription revenues is pegged at $307 million, indicating a 22.8% increase year over year.
The company continues to expand its product portfolio by introducing capabilities and enhancements, which is likely to have been a key growth driver. Continuous investment in its R&D, security expansion and go-to-market initiatives are expected to drive its net expansion rate and contribute to ARR growth.
Dynatrace’s strong partner base is likely to have contributed to its fiscal first-quarter performance. Collaborations with hyperscalers like Google Cloud, Microsoft and Amazon help it create secure enterprise-ready offerings that bring the power of generative AI and predictive analytics to market.
However, persistent macroeconomic headwinds and cautious spending by enterprises are expected to have hurt top-line growth. Tighter budget scrutiny and elongation of sales cycles are expected to have been headwinds in the quarter to be reported.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Dynatrace has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is a company worth considering as our model shows that it has the right combination of elements to beat on earnings in its upcoming release:
Perion Network (PERI - Free Report) has an Earnings ESP of +5.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PERI’s shares have gained 39.4% year-to-date. Perion Network is set to report its second-quarter 2023 results on Aug 2.
Fair Isaac (FICO - Free Report) has an Earnings ESP of +3.12% and a Zacks Rank of 3 at present.
Fair Isaac’s shares have returned 37.9% year to date. FICO is set to report its third-quarter fiscal 2023 results on Aug 2.
Etsy (ETSY - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #3.
Etsy’s shares have declined 16.8% year to date. ETSY is set to report second-quarter 2023 results on Aug 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.