PagerDuty (NYSE:PD) Issues FY 2027 Earnings Guidance

Key Points

• FY2027 guidance: PagerDuty issued FY2027 EPS guidance of $1.23–$1.28, well above the consensus of $0.85, while its revenue outlook of $488.5M–$496.5M misses the consensus of $506.8M.
• Recent performance and Q1 outlook: the company beat last quarter's estimates with $0.29 EPS (vs. $0.24 consensus) and $124.79M revenue (vs. $122.96M), and set Q1 2027 EPS guidance of $0.23–$0.25.
• Market reaction and positioning: shares fell about 1.6% to $7.25, trading at a PE of 4.53 and a market cap of ~$665M; analysts' consensus is "Hold" with an average target of $16, a director recently sold 266,667 shares, and institutional ownership is ~97%.

PagerDuty (NYSE:PD - Get Free Report) updated its FY 2027 earnings guidance on Thursday. The company provided EPS guidance of 1.230-1.280 for the period, compared to the consensus EPS estimate of 0.850. The company issued revenue guidance of $488.5 million-$496.5 million, compared to the consensus revenue estimate of $506.8 million. PagerDuty also updated its Q1 2027 guidance to 0.230-0.250 EPS.

PagerDuty Stock Down 1.6%

NYSE:PD traded down $0.12 during trading hours on Thursday, reaching $7.25. 4,680,468 shares of the stock were exchanged, compared to its average volume of 3,306,968. The stock has a market cap of $665.38 million, a PE ratio of 4.53, a PEG ratio of 1.91 and a beta of 0.73. PagerDuty has a twelve month low of $6.18 and a twelve month high of $19.70. The firm has a 50 day moving average of $9.30 and a 200 day moving average of $13.04. The company has a debt-to-equity ratio of 1.23, a current ratio of 2.37 and a quick ratio of 2.37.

PagerDuty (NYSE:PD - Get Free Report) last posted its quarterly earnings data on Thursday, March 12th. The company reported $0.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.05. The company had revenue of $124.79 million for the quarter, compared to the consensus estimate of $122.96 million. PagerDuty had a net margin of 31.12% and a return on equity of 10.27%. PagerDuty has set its Q1 2027 guidance at 0.230-0.250 EPS and its FY 2027 guidance at 1.230-1.280 EPS. On average, equities analysts expect that PagerDuty will post -0.27 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages have commented on PD. Wall Street Zen raised shares of PagerDuty from a "hold" rating to a "buy" rating in a research report on Sunday, January 25th. Zacks Research cut PagerDuty from a "strong-buy" rating to a "hold" rating in a report on Monday, January 26th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of PagerDuty in a research report on Monday, December 29th. Truist Financial dropped their target price on PagerDuty from $20.00 to $16.00 and set a "buy" rating on the stock in a report on Wednesday, January 7th. Finally, Morgan Stanley set a $9.00 price target on PagerDuty in a research report on Thursday, February 19th. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, PagerDuty has a consensus rating of "Hold" and an average target price of $16.00.

Insider Activity at PagerDuty

In other news, Director Dan Alexandru Solomon sold 266,667 shares of PagerDuty stock in a transaction dated Tuesday, December 30th. The shares were sold at an average price of $13.35, for a total value of $3,560,004.45. Following the completion of the transaction, the director owned 2,389,665 shares of the company's stock, valued at $31,902,027.75. This trade represents a 10.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 8.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PagerDuty

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Ameriprise Financial Inc. increased 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 worth $23,961,000 after buying an additional 1,115,577 shares during the last quarter. Alyeska Investment Group L.P. bought a new stake in PagerDuty in the third quarter valued at approximately $13,710,000. Danske Bank A S acquired a new stake in shares of PagerDuty in the third quarter valued at approximately $13,271,000. Jacobs Levy Equity Management Inc. acquired a new stake in shares of PagerDuty in the fourth quarter valued at approximately $9,910,000. Finally, Two Sigma Investments LP boosted its stake in shares of PagerDuty by 184.1% during the 3rd quarter. Two Sigma Investments LP now owns 855,831 shares of the company's stock worth $14,138,000 after acquiring an additional 554,611 shares during the period. Institutional investors own 97.26% of the company's stock.

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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