Datadog EPS Estimates Slashed 22%-34.8% Despite 5.2% Share Gain
Datadog shares rose 5.2% over the past month versus a 1.7% S&P 500 decline, while consensus EPS estimates for the quarter ($0.51), current year ($2.14) and next year ($2.61) were revised down by 22.1%, 34.8% and 4.1%. Quarterly revenue is estimated at $957.1M (+25.7%).
1. Recent Share Performance
Datadog shares have risen 5.2% over the past month, outperforming the S&P 500’s 1.7% decline and the Internet Software industry’s 9.6% drop.
2. Earnings Estimate Revisions
Consensus EPS estimates for the current quarter are now $0.51 (down 22.1%), for the full fiscal year $2.14 (down 34.8%) and for next year $2.61 (down 4.1%), reflecting sell-side analysts’ downward revisions.
3. Revenue Growth Forecasts
The consensus revenue estimate for the current quarter stands at $957.07 million (+25.7% YOY), while full-year and next-year sales forecasts are $4.08 billion (+19.2%) and $4.83 billion (+18.2%), respectively.
4. Valuation and Rating
Datadog holds a Zacks Rank #3 (Hold) and an F on the Value Style Score, indicating the stock trades at a premium to peers despite strong growth, suggesting limited near-term upside.