Shares of digital contract company DocuSign (NASDAQ:DOCU) jumped in after-hours trading following a Q2 report that surpassed the market’s expectations. The company reported adjusted earnings of $0.72 per share, with revenue tallying up to $687.7M, pleasantly eclipsing the analysts’ forecast of $0.66 per share on $677.1M in sales.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
In light of these promising figures, DocuSign has optimistically adjusted its forecast for the impending quarter, projecting revenues in the vicinity of $687M to $691M—eclipsing analysts’ expectations hovering around $685.5M. Furthermore, the firm ramped up its annual sales forecast, now estimating a range of $2.73B to $2.74B, up from its earlier projection of $2.71B to $2.73B. In addition, the company has increased its share buyback authorization by a whopping $300M, elevating the total fund to $500M, with no fixed purchase obligation or an expiry date, as per the company’s statement.
Is DocuSign a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on DOCU stock based on three Buys, seven Holds, and three Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $65.18 per share implies 25.03%% upside potential.
