Scotiabank Has Negative Outlook of Dynatrace FY2027 Earnings

Key Points

• Scotiabank lowered its FY2027 EPS estimate for Dynatrace to $1.01 from $1.08, below the $1.12 consensus estimate, while maintaining an “Outperform” rating and a $61 price target.
• Dynatrace recently beat quarterly expectations, reporting $0.48 EPS versus $0.45 expected and $554.55 million in revenue; quarterly revenue rose 16.3% year over year.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus rating and an average price target of $54.54. Institutional investors own 94.28% of the company’s shares.

Dynatrace, Inc. (NYSE:DT - Free Report) - Investment analysts at Scotiabank reduced their FY2027 earnings per share estimates for shares of Dynatrace in a research note issued on Wednesday, August 19th. Scotiabank analyst P. Colville now anticipates that the company will post earnings per share of $1.01 for the year, down from their previous estimate of $1.08. Scotiabank has a "Outperform" rating and a $61.00 price objective on the stock. The consensus estimate for Dynatrace's current full-year earnings is $1.12 per share.

Dynatrace (NYSE:DT - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.03. The firm had revenue of $554.55 million for the quarter, compared to analysts' expectations of $550.01 million. Dynatrace had a return on equity of 11.07% and a net margin of 7.22%.The business's revenue was up 16.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.42 earnings per share. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS.

Other research analysts have also issued reports about the stock. Oppenheimer upped their price objective on shares of Dynatrace from $45.00 to $55.00 and gave the stock an "outperform" rating in a report on Monday, July 20th. Wedbush set a $48.00 target price on shares of Dynatrace in a research note on Friday, May 15th. Truist Financial boosted their price target on shares of Dynatrace from $55.00 to $60.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Weiss Ratings raised shares of Dynatrace from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, July 9th. Finally, BTIG Research raised their price objective on shares of Dynatrace from $47.00 to $62.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Twenty-two research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, Dynatrace presently has an average rating of "Moderate Buy" and an average price target of $54.54.

Dynatrace Stock Down 0.2%

Shares of DT stock opened at $49.18 on Monday. The firm has a market capitalization of $14.21 billion, a price-to-earnings ratio of 98.36, a PEG ratio of 2.98 and a beta of 0.72. The stock has a fifty day moving average of $44.93 and a 200 day moving average of $40.27. Dynatrace has a 52 week low of $31.64 and a 52 week high of $53.28.

Institutional Investors Weigh In On Dynatrace

A number of institutional investors have recently modified their holdings of DT. Pictet Asset Management Holding SA boosted its stake in Dynatrace by 7.9% in the 1st quarter. Pictet Asset Management Holding SA now owns 15,809,223 shares of the company's stock worth $584,649,000 after purchasing an additional 1,160,690 shares in the last quarter. Wellington Management Group LLP increased its stake in Dynatrace by 23.5% during the 2nd quarter. Wellington Management Group LLP now owns 11,528,792 shares of the company's stock valued at $506,229,000 after purchasing an additional 2,191,497 shares in the last quarter. State Street Corp increased its stake in Dynatrace by 1.0% during the 4th quarter. State Street Corp now owns 10,664,357 shares of the company's stock valued at $462,193,000 after purchasing an additional 101,994 shares in the last quarter. Bank of America Corp DE raised its holdings in Dynatrace by 304.7% in the first quarter. Bank of America Corp DE now owns 9,357,612 shares of the company's stock worth $346,044,000 after buying an additional 7,045,591 shares during the last quarter. Finally, First Trust Advisors LP raised its holdings in Dynatrace by 706.8% in the first quarter. First Trust Advisors LP now owns 6,801,507 shares of the company's stock worth $251,520,000 after buying an additional 5,958,505 shares during the last quarter. 94.28% of the stock is owned by hedge funds and other institutional investors.

About Dynatrace

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.

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