Core Insights - Dynatrace (DT) is expected to report quarterly earnings of $0.29 per share, a 7.4% increase year-over-year, with revenues projected at $392.2 million, reflecting a 17.8% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1][2] Revenue Projections - Analysts forecast 'Revenues- Services' to be $17.11 million, showing a year-over-year increase of 4.1% [3] - 'Revenues- Subscriptions' are projected to reach $375.13 million, indicating an 18.5% year-over-year growth [4] Annual Recurring Revenue and Gross Profit - The average prediction for 'Annual Recurring Revenue (ARR)- Total' is $1.53 billion, up from $1.29 billion in the same quarter last year [4] - Analysts expect 'Gross profit- Subscriptions' to be $328.90 million, compared to $273.55 million from the previous year [4] Stock Performance - Over the past month, Dynatrace shares have returned -5.4%, while the Zacks S&P 500 composite has seen a -0.4% change [5] - Currently, Dynatrace holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Company Overview - Dynatrace is set to announce its earnings on August 7, 2024, with an expected EPS of $0.29, reflecting a 7.41% increase from the prior-year quarter [1] - The Zacks Consensus Estimate for revenue is projected at $392.2 million, indicating a 17.82% growth compared to the same period last year [1] - For the annual period, the anticipated earnings are $1.28 per share and revenue of $1.65 billion, representing increases of 6.67% and 15.59%, respectively [9] Stock Performance - Shares of Dynatrace have decreased by 0.64% over the past month, outperforming the Computer and Technology sector's decline of 5.32% and the S&P 500's drop of 1.16% [4] - The stock closed at $44.30, with a daily increase of 1.3%, surpassing the S&P 500's daily gain of 1.11% [8] Valuation Metrics - Dynatrace is currently trading at a Forward P/E ratio of 34.24, which is higher than the industry average of 28.04, suggesting that Dynatrace is trading at a premium [6] - The company has a PEG ratio of 3.65, compared to the industry average PEG ratio of 3.21 [11] Industry Context - The Computers - IT Services industry, which includes Dynatrace, holds a Zacks Industry Rank of 93, placing it in the top 37% of over 250 industries [3] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Shares of Dynatrace have gained 1.94% over the past month, outperforming the Computer and Technology sector's gain of 1.25% but lagging behind the S&P 500's gain of 4.43% [1] - The latest trading session saw Dynatrace ending at $43.32, reflecting a -1.77% adjustment from the previous day's close, which lagged the S&P 500's 1.39% loss on the same day [7] Financial Estimates - The Zacks Consensus Estimates forecast earnings of $1.28 per share and revenue of $1.65 billion for the year, indicating changes of +6.67% and +15.59%, respectively, compared to the previous year [2] - For the upcoming financial results, Dynatrace is anticipated to report an EPS of $0.29, marking a 7.41% rise compared to the same quarter of the previous year, with projected net sales of $392.2 million, up 17.82% from the year-ago period [8] Valuation Metrics - Dynatrace's current Forward P/E ratio is 34.53, which represents a premium compared to its industry's average Forward P/E of 27.64 [4] - The company has a PEG ratio of 3.68, compared to the industry's average PEG ratio of 3.33 [11] Industry Context - Dynatrace operates within the Computers - IT Services industry, which is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 99, placing it within the top 40% of over 250 industries [5] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [12] Analyst Estimates - Recent changes to analyst estimates for Dynatrace reflect evolving short-term business trends, with positive estimate revisions interpreted as a good sign for the company's business outlook [9] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Dynatrace as 3 (Hold), with a 0.19% rise in the Zacks Consensus EPS estimate over the past month [10]

In the latest trading session, Dynatrace (DT) closed at $44.74, marking a +1.66% move from the previous day. This move outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 0.71%. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.28 per share and revenue of $1.65 billion. These totals would mark changes of +6.67% and +15.58%, respectively, from last year. The Zacks Rank system ranges from #1 (Strong Buy ...

When other investors hear low-priced growth stocks, they may think about a specific price target that allows them to accumulate a significant number of shares for a modest capital investment. Still, others might define a low price as a stock trading near its 52-week low. United Parcel Service (NYSE:UPS) is down 22.2% in the last 12 months and is near its 52-week low. That's not surprising because the package delivery company is reporting weak volume in all of its core areas. The company's debt is also at 10 ...

UKRAINE - 2024/01/19: In this photo illustration, the Dynatrace logo is seen on a smartphone and in ... [+] the background. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images While many companies are talking about generative AI, very few — notably Nvidia, SuperMicro, and Vertiv — are getting enough of a revenue boost from supporting the AI chatbots to reward investors. There are many software companies now aiming to deploy generative AI in ...

Core Viewpoint - Dynatrace has an average brokerage recommendation (ABR) of 1.50, indicating a consensus leaning towards a Strong Buy to Buy rating based on 30 brokerage firms' recommendations [1][10]. Brokerage Recommendations - The ABR reflects a strong positive bias, with 22 out of 30 recommendations classified as Strong Buy, accounting for 73.3% of total recommendations [10]. - The Zacks Rank, which is a separate quantitative model, provides a different perspective on stock performance, with Dynatrace currently holding a Zacks Rank of 3 (Hold) due to unchanged earnings estimates [9][16]. Earnings Estimates - The Zacks Consensus Estimate for Dynatrace's earnings for the current year remains at $1.28, unchanged over the past month [8]. - The stability in earnings estimates suggests that the stock may perform in line with broader market trends in the near term [16]. Analyst Behavior - Analysts from brokerage firms tend to exhibit overly optimistic ratings, often issuing more favorable recommendations than warranted by their research [14]. - The disparity between ABR and Zacks Rank highlights the importance of using multiple indicators for investment decisions, as brokerage recommendations may not always align with retail investors' interests [11][12].

Core Insights - Dynatrace (DT) reported a 21% year-over-year increase in total annual recurring revenues (ARR) for the fourth quarter of fiscal 2024, reaching $1.5 billion [1][6] - The company is enhancing its hybrid cloud security and observability capabilities through partnerships, including a recent collaboration with Gigamon and Trace3 [1][9] Revenue Growth - The projected revenues for the first quarter of fiscal 2025 are estimated to be between $391 million and $393 million, indicating a year-over-year increase of 17-18% [13] - The Zacks Consensus Estimate for first-quarter revenues stands at $392.12 million, reflecting a growth of 17.79% compared to the previous year [13] Strategic Partnerships - Dynatrace expanded its partnership with Google Cloud to enhance AI-powered analytics and automation for cloud-native environments, aimed at accelerating global digital transformation [3] - The integration of Kubernetes Security Posture Management (KSPM) capabilities into Dynatrace's platform enhances security and compliance monitoring for cloud-native applications [4] - Collaborations with major partners like Google Cloud, Amazon Web Services (AWS), and Lloyds Banking Group are driving growth and expanding Dynatrace's market presence [9][10][11] Product Development - The Power of 3 Cloud Integration Initiative aims to improve customers' ability to secure and manage hybrid cloud infrastructures [7] - By integrating advanced observability and security capabilities, organizations can detect vulnerabilities, monitor threats, and optimize performance [8] Market Performance - Despite a strong portfolio and expanding partner base, Dynatrace's stock has declined 16.1% year-to-date, compared to a 9.8% growth in the Zacks Computer & Technology sector [12]

Any recent changes to analyst estimates for Dynatrace should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability. You can find more information on all of these metrics, and much more, on Zacks.com. In the latest market close, Dynatrace (DT) reached $46.57, with a -1% movement compared to the previous day. The stock ...

Summary of Dynatrace, Inc. Conference Call Company Overview - **Company**: Dynatrace, Inc. (NYSE:DT) - **Industry**: Observability software market, valued at approximately $50 billion [3] Core Business and Market Dynamics - Dynatrace assists companies in optimizing software performance through observability, which involves analyzing data types like logs, traces, and metrics [3] - The complexity of software workloads in a cloud environment has increased, making it more challenging to ensure software operates effectively [3] - There is a trend towards platform consolidation in observability solutions, driven by the need for improved user experience, productivity, and cost efficiency [8][9] Competitive Positioning - The shift from departmental to centralized observability decision-making is beneficial for Dynatrace, as it aligns with their integrated platform approach [9] - Over two-thirds of Dynatrace's deals involve partners, with around 30% of deals originated by partners like Accenture and Deloitte, which helps accelerate deal closures [11] - Dynatrace differentiates itself through its use of AI, particularly Hypermodal AI, which includes causal, predictive, and generative AI to enhance software performance and incident management [13][14] AI and Product Development - Dynatrace has integrated generative AI into its platform, enhancing user accessibility and query capabilities [13] - The company has historically utilized causal and predictive AI to reduce incident resolution times significantly, with examples of reducing mean time to repair from hours to minutes [14][15] - The introduction of new products, such as log management and application security, is expected to expand market opportunities and drive growth [29][36] Go-to-Market Strategy - Dynatrace is adjusting its go-to-market strategy to focus more on larger accounts, which represent significant growth potential [22][24] - The company has seen a 30% account switchover, indicating a strategic shift in targeting high-value customers [23] - The new Dynatrace Platform Subscription (DPS) model is gaining traction, with consumption growth double that of the previous pricing model [30][39] Market Opportunities and Challenges - The increasing need for effective software performance is driving demand for observability solutions, positioning Dynatrace favorably in the market [29] - The competitive landscape includes large players, but Dynatrace aims to maintain its edge through contextual analytics, Hypermodal AI, and automation [33][34] - The application security market is crowded, but Dynatrace is focusing on areas where observability data can provide a competitive advantage [47] Conclusion - Dynatrace is well-positioned to capitalize on the growing observability market through strategic partnerships, innovative AI applications, and a focused go-to-market strategy aimed at larger accounts. The company is optimistic about its growth trajectory, driven by the increasing complexity of software environments and the need for integrated observability solutions.