PagerDuty (NYSE:PD) Issues FY 2027 Earnings Guidance

PagerDuty (NYSE:PD) issued an update on its FY 2027 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 1.270-1.320 for the period, compared to the consensus earnings per share estimate of 1.080. The company issued revenue guidance of $488.5 million-$496.5 million, compared to the consensus revenue estimate of $493.4 million.

PagerDuty Trading Up 3.0%

Shares of PagerDuty stock opened at $9.66 on Wednesday. The firm has a market capitalization of $745.21 million, a price-to-earnings ratio of 4.74, a PEG ratio of 2.41 and a beta of 0.94. PagerDuty has a fifty-two week low of $5.70 and a fifty-two week high of $18.00. The company has a debt-to-equity ratio of 1.83, a quick ratio of 1.95 and a current ratio of 1.95. The stock has a 50 day moving average of $7.91 and a 200 day moving average of $8.67.

PagerDuty (NYSE:PD) last posted its earnings results on Thursday, May 28th. The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.08. The company had revenue of $120.97 million during the quarter, compared to analysts’ expectations of $119.52 million. PagerDuty had a return on equity of 18.20% and a net margin of 38.60%.The firm’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.24 earnings per share. PagerDuty has set its Q2 2027 guidance at 0.290-0.310 EPS. As a group, research analysts predict that PagerDuty will post 0.58 earnings per share for the current year.

PagerDuty announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 28th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to repurchase up to 16.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reissued a “sell (d)” rating on shares of PagerDuty in a research note on Friday, May 22nd. Canaccord Genuity Group lifted their target price on shares of PagerDuty from $9.00 to $10.00 and gave the company a “buy” rating in a report on Friday, May 29th. Royal Bank Of Canada boosted their target price on PagerDuty from $8.00 to $9.00 and gave the company a “sector perform” rating in a research report on Friday, May 29th. Truist Financial decreased their price target on PagerDuty from $12.00 to $9.00 and set a “buy” rating on the stock in a research note on Friday, March 13th. Finally, TD Cowen lowered their price target on PagerDuty from $20.00 to $10.00 and set a “buy” rating for the company in a research report on Friday, March 13th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $11.25.

Hedge Funds Weigh In On PagerDuty

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. increased its holdings in shares of PagerDuty by 333.2% in the 3rd quarter. Ameriprise Financial Inc. now owns 1,450,429 shares of the company’s stock valued at $23,961,000 after acquiring an additional 1,115,577 shares during the period. Alyeska Investment Group L.P. acquired a new stake in shares of PagerDuty in the 3rd quarter valued at approximately $13,710,000. Danske Bank A S purchased a new stake in shares of PagerDuty during the 3rd quarter worth $13,271,000. Jacobs Levy Equity Management Inc. acquired a new position in PagerDuty during the fourth quarter worth about $9,910,000. Finally, Two Sigma Investments LP boosted its stake in shares of PagerDuty by 184.1% during the 3rd quarter. Two Sigma Investments LP now owns 855,831 shares of the company’s stock worth $14,138,000 after acquiring an additional 554,611 shares in the last quarter. 97.26% of the stock is owned by institutional investors and hedge funds.

About PagerDuty

PagerDuty, Inc engages in the operation of a digital operations management platform in the United States and internationally. The company’s digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverage machine learning to correlate, process, and predict opportunities and issues. Its platform includes PagerDuty Incident Management that provides a real-time view across the status of a digital service while incorporating noise reduction to remove false positives; AIOps that applies machine learning to correlate and automate the identification of incidents from billions of events; Process Automation offers centralized design time and run time environment for orchestrating automated workflows that span across departments, technologies, and networks; Customer Service Operations, which is offered to orchestrate, automate, and scale responses to customer impacting issues.