Dynatrace (NYSE:DT) Issues FY 2027 Earnings Guidance

Key Points

• Dynatrace raised its FY 2027 outlook, guiding for EPS of 1.930-1.950 versus the consensus estimate of 1.750. It also kept revenue guidance at about $2.3 billion and set Q1 2027 EPS guidance at 0.440-0.450.
• The company’s most recent quarterly results beat expectations, with earnings of $0.44 per share on revenue of $515.47 million, both above analyst estimates. Revenue also rose 18.2% year over year.
• Dynatrace announced a $1 billion share repurchase program, which can cover up to 9.8% of its stock. The article also notes continued analyst support, with a consensus rating of Moderate Buy and an average price target of $51.32.

Dynatrace (NYSE:DT - Get Free Report) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 1.930-1.950 for the period, compared to the consensus EPS estimate of 1.750. The company issued revenue guidance of $2.3 billion-$2.3 billion, compared to the consensus revenue estimate of $2.3 billion. Dynatrace also updated its Q1 2027 guidance to 0.440-0.450 EPS.

Analysts Set New Price Targets

A number of research firms have recently commented on DT. Royal Bank Of Canada reissued an "outperform" rating on shares of Dynatrace in a research report on Monday, February 9th. DA Davidson upgraded Dynatrace to a "strong-buy" rating in a research note on Thursday, April 30th. Wedbush cut their price target on Dynatrace from $67.00 to $55.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 11th. The Goldman Sachs Group began coverage on Dynatrace in a report on Tuesday, April 21st. They set a "buy" rating and a $45.00 price objective on the stock. Finally, Canaccord Genuity Group set a $50.00 target price on Dynatrace in a research note on Tuesday, February 10th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $51.32.

Dynatrace Price Performance

DT opened at $39.14 on Wednesday. The stock's 50 day moving average price is $37.14 and its 200 day moving average price is $40.59. The stock has a market cap of $11.67 billion, a P/E ratio of 64.17, a P/E/G ratio of 2.46 and a beta of 0.70. Dynatrace has a 12 month low of $31.64 and a 12 month high of $57.55.

Dynatrace (NYSE:DT - Get Free Report) last released its earnings results on Monday, February 9th. The company reported $0.44 earnings per share for the quarter, topping analysts' consensus estimates of $0.41 by $0.03. Dynatrace had a return on equity of 9.75% and a net margin of 9.55%.The firm had revenue of $515.47 million during the quarter, compared to the consensus estimate of $506.31 million. During the same period in the prior year, the firm posted $0.37 earnings per share. The firm's revenue for the quarter was up 18.2% compared to the same quarter last year. Equities analysts anticipate that Dynatrace will post 0.88 EPS for the current year.

Dynatrace announced that its board has approved a share repurchase program on Monday, February 9th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 9.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at Dynatrace

In related news, EVP Stephen A. Mcmahon purchased 3,000 shares of the company's stock in a transaction on Tuesday, March 3rd. The shares were bought at an average price of $35.75 per share, with a total value of $107,250.00. Following the completion of the acquisition, the executive vice president owned 3,454 shares of the company's stock, valued at approximately $123,480.50. This represents a 660.79% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 0.57% of the company's stock.

Institutional Trading of Dynatrace

A number of hedge funds have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. grew its stake in shares of Dynatrace by 21.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company's stock valued at $85,000 after buying an additional 272 shares in the last quarter. Quarry LP grew its position in shares of Dynatrace by 251.1% during the 4th quarter. Quarry LP now owns 2,219 shares of the company's stock worth $96,000 after buying an additional 1,587 shares during the period. Jones Financial Companies Lllp raised its position in shares of Dynatrace by 19.2% during the 1st quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company's stock valued at $102,000 after acquiring an additional 348 shares during the last quarter. UMB Bank n.a. boosted its holdings in Dynatrace by 12.7% during the fourth quarter. UMB Bank n.a. now owns 3,190 shares of the company's stock worth $138,000 after buying an additional 360 shares during the last quarter. Finally, Arax Advisory Partners grew its holdings in shares of Dynatrace by 306.6% in the 4th quarter. Arax Advisory Partners now owns 3,253 shares of the company's stock valued at $141,000 after buying an additional 2,453 shares during the period. Hedge funds and other institutional investors own 94.28% of the company's stock.

Dynatrace Company Profile

Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company's engine, Davis.

The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.