Dynatrace, Inc. Just Recorded A 5.9% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that Dynatrace, Inc. (NYSE:DT) filed its full-year result this time last week. The early response was not positive, with shares down 2.4% to US$46.93 in the past week. The result was positive overall - although revenues of US$1.4b were in line with what the analysts predicted, Dynatrace surprised by delivering a statutory profit of US$0.52 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Dynatrace

Taking into account the latest results, the consensus forecast from Dynatrace's 29 analysts is for revenues of US$1.66b in 2025. This reflects a solid 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to sink 10% to US$0.47 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.66b and earnings per share (EPS) of US$0.47 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$58.58, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Dynatrace, with the most bullish analyst valuing it at US$70.00 and the most bearish at US$50.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Dynatrace's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. Even after the forecast slowdown in growth, it seems obvious that Dynatrace is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Dynatrace analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Dynatrace is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.