PagerDuty (NYSE:PD) Releases Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• PagerDuty beat quarterly expectations: The company reported adjusted earnings of $0.32 per share versus the $0.31 consensus estimate, while revenue reached $124.44 million, above analysts’ $123.27 million forecast.
• Shares rose 3.8% to $12.66 following the results. PagerDuty’s stock remains rated “Hold” on average, with analysts’ consensus price target at $12.28.
• The company authorized a $100 million share repurchase program, allowing it to buy back up to 16.4% of outstanding shares; institutional investors own 97.26% of the stock.

PagerDuty (NYSE:PD - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.01, FiscalAI reports. The business had revenue of $124.44 million during the quarter, compared to analyst estimates of $123.27 million. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.

PagerDuty Stock Up 3.8%

Shares of NYSE PD traded up $0.47 during mid-day trading on Thursday, reaching $12.66. The company had a trading volume of 1,715,200 shares, compared to its average volume of 2,456,250. The stock's 50 day moving average is $10.49 and its 200-day moving average is $8.37. The company has a debt-to-equity ratio of 1.83, a quick ratio of 1.95 and a current ratio of 1.95. PagerDuty has a twelve month low of $5.70 and a twelve month high of $17.29. The stock has a market capitalization of $976.30 million, a PE ratio of 6.21, a price-to-earnings-growth ratio of 3.14 and a beta of 0.93.

Wall Street Analyst Weigh In

Several brokerages have recently commented on PD. TD Cowen reaffirmed a "buy" rating on shares of PagerDuty in a report on Wednesday. Weiss Ratings raised PagerDuty from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, August 21st. UBS Group set a $13.50 price objective on PagerDuty in a report on Wednesday. Truist Financial upped their price objective on shares of PagerDuty from $11.00 to $13.00 and gave the company a "buy" rating in a research note on Thursday, August 20th. Finally, Morgan Stanley cut shares of PagerDuty from an "equal weight" rating to an "underweight" rating and decreased their target price for the stock from $10.00 to $9.00 in a report on Tuesday, July 21st. Three analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, PagerDuty has an average rating of "Hold" and a consensus target price of $12.28.

PagerDuty declared that its board has authorized a share buyback program on Thursday, May 28th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 16.4% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On PagerDuty

A number of hedge funds and other institutional investors have recently made changes to their positions in PD. Geode Capital Management LLC grew its stake in shares of PagerDuty by 2.9% in the 4th quarter. Geode Capital Management LLC now owns 2,113,117 shares of the company's stock valued at $27,708,000 after buying an additional 58,881 shares in the last quarter. Ameriprise Financial Inc. raised its position in PagerDuty by 333.2% during the third quarter. Ameriprise Financial Inc. now owns 1,450,429 shares of the company's stock valued at $23,961,000 after acquiring an additional 1,115,577 shares in the last quarter. Loomis Sayles & Co. L P lifted its stake in PagerDuty by 0.3% in the fourth quarter. Loomis Sayles & Co. L P now owns 1,092,963 shares of the company's stock valued at $14,329,000 after acquiring an additional 3,276 shares during the last quarter. Millennium Management LLC lifted its stake in PagerDuty by 55.4% in the first quarter. Millennium Management LLC now owns 1,005,111 shares of the company's stock valued at $18,363,000 after acquiring an additional 358,347 shares during the last quarter. Finally, Two Sigma Investments LP lifted its stake in PagerDuty by 184.1% in the third quarter. Two Sigma Investments LP now owns 855,831 shares of the company's stock valued at $14,138,000 after acquiring an additional 554,611 shares during the last quarter. 97.26% of the stock is owned by hedge funds and other institutional investors.

About PagerDuty

PagerDuty, Inc engages in the operation of a digital operations management platform in the United States and internationally. The company's digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and issues. Its platform includes PagerDuty Incident Management that provides a real-time view across the status of a digital service while incorporating noise reduction to remove false positives; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; Process Automation offers centralized design time and run time environment for orchestrating automated workflows that span across departments, technologies, and networks; Customer Service Operations, which is offered to orchestrate, automate, and scale responses to customer impacting issues.

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