Daily Stock Market Reports

Why Shares of PagerDuty Stock Are Rising Fast Today


What happened 

Shares of PagerDuty (PD 5.55%), a digital operations management company, were climbing today after the company reported better-than-expected third-quarter results. The company beat Wall Street’s top- and bottom-line estimates and raised its full-year earnings guidance. 

As a result, the tech stock was up by 7.1% as of 10:36 a.m. ET. 

So what 

PagerDuty reported non-GAAP (adjusted) earnings per share of $0.04, up from a loss of $0.07 in the year-ago quarter and easily outpacing analysts’ consensus estimate of a loss of $0.04 per share.

The company also beat Wall Street’s top-line estimates, with PagerDuty reporting $94.2 million in the quarter, up 31% year over year, ahead of the average consensus estimate of $92.8 million. 

“Despite a volatile macroeconomic backdrop, we made significant progress in realizing profitable, durable growth,” PagerDuty CEO Jennifer Tejada said in a press release.

In addition to the company’s strong performance in the third quarter, PagerDuty’s management also raised its full-year earnings guidance to between negative $0.01 and $0.00, compared to Wall Street’s average consensus estimate of a loss of $0.11 per share. 

Now what 

Investors were also happy to see that the company expects full-year revenue to be in the range between $368 million and $370 million, which is in line with analysts’ average estimate of $367.8 million. 

With the company’s strong performance in the third quarter and management’s optimistic outlook for the full year, it’s no surprise to see PagerDuty’s stock rising quickly. 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PagerDuty. The Motley Fool has a disclosure policy.



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