Wall Street analysts forecast that Dynatrace (DT) will report quarterly earnings of $0.38 per share in its upcoming release, pointing to a year-over-year increase of 15.2%. It is anticipated that revenues will amount to $466.07 million, exhibiting an increase of 16.7% compared to the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Dynatrace metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Revenues- Services' will reach $19.84 million. The estimate suggests a change of +12.5% year over year.
The average prediction of analysts places 'Revenues- Subscriptions' at $447.92 million. The estimate indicates a change of +17.4% from the prior-year quarter.
Analysts' assessment points toward 'Annual Recurring Revenue (ARR)- Total' reaching $1.78 billion. Compared to the present estimate, the company reported $1.54 billion in the same quarter last year.
Based on the collective assessment of analysts, 'Dollar-based Net Retention Rate' should arrive at 109.9%. Compared to the current estimate, the company reported 112.0% in the same quarter of the previous year.
Analysts predict that the 'Gross profit- Subscriptions' will reach $390.94 million. Compared to the present estimate, the company reported $328.00 million in the same quarter last year.
View all Key Company Metrics for Dynatrace here>>>
Shares of Dynatrace have experienced a change of -10.7% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), DT is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Dynatrace, Inc. (DT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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