What's Next: Dynatrace's Earnings Preview

Dynatrace DT will release its quarterly earnings report on Wednesday, 2025-05-14. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Dynatrace to report an earnings per share (EPS) of $0.30.

Anticipation surrounds Dynatrace's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.04, leading to a 0.03% drop in the share price the following trading session.

Here's a look at Dynatrace's past performance and the resulting price change:

Dynatrace Share Price Analysis

Shares of Dynatrace were trading at $50.48 as of May 12. Over the last 52-week period, shares are up 6.3%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Dynatrace

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Dynatrace.

Analysts have provided Dynatrace with 10 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $57.2, suggesting a potential 13.31% upside.

Comparing Ratings Among Industry Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Bentley Systems, Docusign and Guidewire Software, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Bentley Systems, with an average 1-year price target of $53.0, suggesting a potential 4.99% upside.
• Analysts currently favor an Neutral trajectory for Docusign, with an average 1-year price target of $96.07, suggesting a potential 90.31% upside.
• Analysts currently favor an Outperform trajectory for Guidewire Software, with an average 1-year price target of $239.0, suggesting a potential 373.45% upside.

Analysis Summary for Peers

The peer analysis summary outlines pivotal metrics for Bentley Systems, Docusign and Guidewire Software, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Dynatrace ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Consensus rating. However, it has the lowest Return on Equity compared to its peers.

All You Need to Know About Dynatrace

Dynatrace is a cloud-native company that focuses on analyzing machine data. Its product portfolio, delivered as software as a service, allows a client to monitor and analyze its entire IT infrastructure. Dynatrace's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to use it for a variety of applications throughout their businesses.

Dynatrace: A Financial Overview

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Dynatrace's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 19.47% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Dynatrace's net margin excels beyond industry benchmarks, reaching 82.94%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Dynatrace's ROE excels beyond industry benchmarks, reaching 15.4%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 10.24%, the company showcases effective utilization of assets.

Debt Management: Dynatrace's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.03.

To track all earnings releases for Dynatrace visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.