PagerDuty rallies after Q1 earnings beat, stock buyback plan

PagerDuty

31/05/2024 15:50

** PagerDuty's  PD.N  shares last up 8.5% at $19.48 early
Fri, looking to snap 3-session losing streak, after digital
operations management platform's Q1 earnings top expectations
and as it looks to buy back stock
    ** PD rises as much as 18.4% to $21.26 and tracking biggest
daily pct gain since Jan 10
    ** Co late Thurs posted Q1 adj EPS of 17 cents, above LSEG
view of 13 cents, while rev grew ~8% to $111.2 mln, just below
estimate of $111.5 mln
    ** It announced up to $100 mln stock repurchase program that
will continue through May 29, 2026
    ** Co has current market cap of roughly $1.9 bln, per LSEG
    ** TD Cowen said in note to clients it is encouraged by
"strong start" to the year, pointing to co's billings growth in
qtr of 11% topping brokerage's 9% estimate
    ** Rev growth needs to reaccelerate into the teens, TD Cowen
says, reiterates "hold" rating and $23 PT
    ** 6 of 11 brokerages rate PD "strong buy" or "buy", rest
have "hold" and median PT is $27
    ** With move on the session, shares off ~16% YTD and off
~30% over the past year

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))