Dynatrace (DT) To Report Earnings Tomorrow: Here Is What To Expect

Radek Strnad /
2022/08/02 4:13 am EDT

Application performance monitoring software provider Dynatrace (NYSE:DT) will be announcing earnings results tomorrow morning. Here's what you need to know.

Last quarter Dynatrace reported revenues of $252.5 million, up 28.5% year on year, beating analyst revenue expectations by 2.44%. Despite the solid topline results, it was a weaker quarter for the company, with full-year guidance missing analysts' expectations and underwhelming guidance for the next quarter.

Is Dynatrace buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Dynatrace's revenue to grow 24.8% year on year to $261.8 million, slowing down from the 34.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.

Dynatrace Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.52%.

Looking at Dynatrace's peers in the software development segment, only F5 Networks has so far reported results, delivering top-line growth of 3.52% year on year, and beating analyst estimates by 0.99%. The stock traded up 10.8% on the results. Read our full analysis of F5 Networks's earnings results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 2.99% over the last month. Dynatrace is down 11.9% during the same time, and is heading into the earnings with analyst price target of $48.8, compared to share price of $37.01.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.