![](https://investorshub.advfn.com/uicon/126633.png?cb=1684775399)
Monday, May 11, 2020 4:09:25 AM
Why Dynatrace (DT) Could Beat Earnings Estimates Again
Zacks Equity Research
May 7, 2020
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Dynatrace (DT). This company, which is in the Zacks Computers - IT Services industry, shows potential for another earnings beat.
When looking at the last two reports, this software intelligence company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 58.33%, on average, in the last two quarters.
For the most recent quarter, Dynatrace was expected to post earnings of $0.06 per share, but it reported $0.10 per share instead, representing a surprise of 66.67%. For the previous quarter, the consensus estimate was $0.04 per share, while it actually produced $0.06 per share, a surprise of 50%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Dynatrace. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Dynatrace currently has an Earnings ESP of +2.13%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on May 12, 2020.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Recent DT News
- Dynatrace to Report First Quarter Fiscal Year 2025 Financial Results • Business Wire • 07/24/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/16/2024 08:49:36 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/15/2024 08:02:51 PM
- Form ARS - Annual Report to Security Holders • Edgar (US Regulatory) • 07/09/2024 10:36:16 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 07/09/2024 10:35:08 AM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 07/09/2024 10:33:34 AM
- Dynatrace Becomes the First AWS Partner to Integrate with AWS Application Migration Service • Business Wire • 07/01/2024 12:00:00 PM
- Dynatrace nommé lauréat du prix 2024 de Partenaire Microsoft de l'année pour les Amériques • Business Wire • 06/28/2024 08:17:00 PM
- Dynatrace Named a Winner in the 2024 Microsoft Americas Partner of the Year Awards • Business Wire • 06/28/2024 12:00:00 PM
- Gigamon Launches Power of 3 Cloud Integration Initiative with Dynatrace and Trace3 to Deliver Deep Observability Solution to Joint Customers • Business Wire • 06/13/2024 02:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:56:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:54:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:53:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:51:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:44:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:42:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:37:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 10:30:39 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/07/2024 08:10:30 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/06/2024 09:00:32 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 05/23/2024 08:17:33 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 05/23/2024 08:07:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 08:39:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 08:38:50 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/16/2024 12:51:40 AM
Glidelogic Corp. Announces Revolutionary AI-Generated Content Copyright Protection Solution • GDLG • Jul 26, 2024 12:30 PM
Southern Silver Files NI43-101 Technical Report for its Updated Preliminary Economic Assessment for the Cerro Las Minitas Project • SSV • Jul 25, 2024 8:00 AM
Greenlite Ventures Completes Agreement with No Limit Technology • GRNL • Jul 19, 2024 10:00 AM
VAYK Expects Revenue from First Airbnb Property Starting from August • VAYK • Jul 18, 2024 9:00 AM
North Bay Resources Acquires Mt. Vernon Gold Mine, Sierra County, California, with Assays up to 4.8 oz. Au per Ton • NBRI • Jul 18, 2024 9:00 AM
Nightfood Holdings Signs Letter of Intent for All-Stock Acquisition of CarryOutSupplies.com • NGTF • Jul 17, 2024 1:00 PM