The upcoming report from Dynatrace (DT) is expected to reveal quarterly earnings of $0.32 per share, indicating an increase of 3.2% compared to the year-ago period. Analysts forecast revenues of $406.05 million, representing an increase of 15.5% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific Dynatrace metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Revenues- Services' should arrive at $17.28 million. The estimate indicates a change of +0.4% from the prior-year quarter.
The average prediction of analysts places 'Revenues- Subscriptions' at $388.82 million. The estimate points to a change of +16.2% from the year-ago quarter.
Analysts expect 'Annual Recurring Revenue (ARR)- Total' to come in at $1.59 billion. The estimate is in contrast to the year-ago figure of $1.34 billion.
Analysts forecast 'Gross profit- Subscriptions' to reach $340.78 million. Compared to the present estimate, the company reported $289.71 million in the same quarter last year.
View all Key Company Metrics for Dynatrace here>>>
Shares of Dynatrace have demonstrated returns of +0.5% over the past month compared to the Zacks S&P 500 composite's +0.4% change. 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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