Dynatrace Analysts Cut Their Forecasts After Q4 Results

Dynatrace, Inc. DT reported better-than-expected fourth-quarter financial results and approved a share buyback program of up to $500 million on Wednesday.

Dynatrace reported fiscal fourth-quarter 2024 revenue growth of 21% year-on-year to $380.85 million, beating the analyst consensus estimate of $375.29 million. Adjusted EPS of 30 cents beat the analyst consensus estimate of 27 cents, according to data from Benzinga Pro.

"Our fourth quarter results exceeded guidance across all key operating metrics, fueled in part by a record number of 7-figure deals closed in the quarter," said Rick McConnell, Chief Executive Officer.

Dynatrace said it expects fiscal first quarter 2025 revenue of $391 million- $393 million (consensus $393.58 million). Dynatrace expects adjusted EPS of $0.29 – $0.30 (consensus $0.30). For fiscal 2025, Dynatrace expects revenue of $1.644 billion – $1.658 billion vs. the consensus of $1.683 billion. The company expects adjusted EPS of $1.26 – $1.29  vs. the consensus of $1.32.

Dynatrace shares gained 2.8% to close at $47.75 on Wednesday.

These analysts made changes to their price targets on Dynatrace after the company reported quarterly results.

• Baird cut the price target on Dynatrace from $65 to $62. Baird analyst William Power maintained an Outperform rating.
• Truist Securities slashed Dynatrace price target from $70 to $60. Truist Securities analyst Joel Fishbein reiterated a Buy rating.
• Wedbush analyst Taz Koujalgi, meanwhile, reiterated Dynatrace with a Neutral and maintained a $55 price target.

Read More: Wall Street’s Most Accurate Analysts Say Hold These 3 Real Estate Stocks Delivering High-Dividend Yields