The market expects Dynatrace (DT) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than ...

Core Insights - Dynatrace (DT) is positioned to potentially continue its earnings-beat streak in upcoming reports, having surpassed earnings estimates by an average of 11.06% in the last two quarters [1][5]. Earnings Performance - In the most recent quarter, Dynatrace reported earnings of $0.30 per share against an expectation of $0.33 per share, resulting in a surprise of 10.00% [2]. - For the previous quarter, the company exceeded the consensus estimate of $0.33 per share by reporting $0.37 per share, achieving a surprise of 12.12% [2]. Earnings Estimates and Predictions - Estimates for Dynatrace have been trending higher, influenced by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP of +1.33%, indicating bullish sentiment among analysts [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong possibility of another earnings beat [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Group 1 - Dynatrace's stock closed at $42.90, with a daily increase of +1.73%, underperforming the S&P 500's gain of 2.51% [1] - Over the past month, Dynatrace shares have decreased by 16.78%, while the Computer and Technology sector and the S&P 500 have lost 12.18% and 8.86%, respectively [1] Group 2 - Dynatrace is expected to report an EPS of $0.30, unchanged from the same quarter last year, with a revenue forecast of $434.56 million, reflecting a 14.1% year-over-year increase [2] - Recent analyst estimate revisions indicate optimism regarding Dynatrace's business and profitability [3] Group 3 - The Zacks Rank system, which assesses estimate changes, currently ranks Dynatrace at 3 (Hold), with a recent 1.48% decrease in the consensus EPS estimate [5] - Dynatrace has a Forward P/E ratio of 27.55, which is higher than the industry average of 15.51 [5] Group 4 - The company has a PEG ratio of 2.16, compared to the industry average of 1.72, indicating a premium valuation relative to expected earnings growth [6] - The Computers - IT Services industry, which includes Dynatrace, holds a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [6][7]