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For the fiscal third quarter, non-GAAP earnings are projected between 27-28 cents per share.
Revenues are estimated to be between $356 million and $359 million, indicating a 19-20% increase at constant currency.
The Zacks Consensus Estimate for fiscal third-quarter earnings has been unchanged at 28 cents per share in the past 30 days, suggesting 12% growth from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $357.64 million, calling for an increase of 20.23% from the year-ago quarter’s reported figure.
Dynatrace’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 23.02%.
Let’s see how things have shaped up prior to the upcoming announcement.
Factors to Note
Dynatrace’s fiscal third-quarter performance is expected to have benefitted from strong demand for its unified observability and security platform and an expanding clientele.
Dynatrace's AI capabilities and multi-cloud ecosystem to drive real-time insights and automation and strong adoption of its unified platform are expected to have boosted subscription revenues in the fiscal third quarter.
Subscription revenues are expected in the range of $337-$340 million, indicating 20-21% year-over-year growth. The Zacks Consensus Estimate for fiscal third-quarter Subscription revenues is pegged at $341 million, indicating a 22.2% increase year over year.
Dynatrace continues to expand its product portfolio by introducing capabilities and enhancements, which are likely to have been key growth drivers. Continuous investment in security expansion and go-to-market initiatives are expected to have driven its net expansion rate and contributed to ARR growth.
Dynatrace’s strong partner base is likely to have contributed to its fiscal third-quarter performance. The company's growing collaborations with hyperscales like Microsoft to leverage the power of generative AI and predictive analytics with secure enterprise-ready offerings are expected to have been a tailwind.
However, persistent macroeconomic volatility and challenges related to foreign exchange are expected to have hurt top-line growth.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Dynatrace has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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Dynatrace (DT) to Report Q3 Earnings: What's in the Cards?
Dynatrace (DT - Free Report) is set to report third-quarter fiscal 2024 results on Feb 8.
For the fiscal third quarter, non-GAAP earnings are projected between 27-28 cents per share.
Revenues are estimated to be between $356 million and $359 million, indicating a 19-20% increase at constant currency.
The Zacks Consensus Estimate for fiscal third-quarter earnings has been unchanged at 28 cents per share in the past 30 days, suggesting 12% growth from the figure reported in the year-ago quarter.
Dynatrace, Inc. Price and EPS Surprise
Dynatrace, Inc. price-eps-surprise | Dynatrace, Inc. Quote
The consensus mark for revenues is pegged at $357.64 million, calling for an increase of 20.23% from the year-ago quarter’s reported figure.
Dynatrace’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 23.02%.
Let’s see how things have shaped up prior to the upcoming announcement.
Factors to Note
Dynatrace’s fiscal third-quarter performance is expected to have benefitted from strong demand for its unified observability and security platform and an expanding clientele.
Dynatrace's AI capabilities and multi-cloud ecosystem to drive real-time insights and automation and strong adoption of its unified platform are expected to have boosted subscription revenues in the fiscal third quarter.
Subscription revenues are expected in the range of $337-$340 million, indicating 20-21% year-over-year growth. The Zacks Consensus Estimate for fiscal third-quarter Subscription revenues is pegged at $341 million, indicating a 22.2% increase year over year.
Dynatrace continues to expand its product portfolio by introducing capabilities and enhancements, which are likely to have been key growth drivers. Continuous investment in security expansion and go-to-market initiatives are expected to have driven its net expansion rate and contributed to ARR growth.
Dynatrace’s strong partner base is likely to have contributed to its fiscal third-quarter performance. The company's growing collaborations with hyperscales like Microsoft to leverage the power of generative AI and predictive analytics with secure enterprise-ready offerings are expected to have been a tailwind.
However, persistent macroeconomic volatility and challenges related to foreign exchange are expected to have hurt top-line growth.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Dynatrace has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
CrowdStrike (CRWD - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CrowdStrike is scheduled to release fourth-quarter fiscal 2024 results on Mar 5. CRWD’s shares have gained 18.5% in the year-to-date period.
Shopify (SHOP - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank #1.
Shopify is set to announce fourth-quarter 2023 results on Feb 13. SHOP shares have gained 4.5% in the year-to-date period.
Twilio (TWLO - Free Report) has an Earnings ESP of +31.37% and a Zacks Rank #2.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have declined 8.9% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.