Domo, Inc. (NASDAQ: DOMO) has revised its earnings guidance for the fourth quarter of 2026, announcing an expected earnings per share (EPS) range of -$0.050 to -$0.010. This update, released on October 6, 2023, contrasts with the consensus estimate of -$0.030. The company also projected revenue for the quarter to fall between $78 million and $79 million, slightly below the consensus revenue estimate of $79.2 million.
In addition to its quarterly guidance, Domo has adjusted its full-year 2026 EPS forecast to a range of -$0.110 to -$0.070. According to analysts, the company is expected to report an average EPS of -$2.10 for the current fiscal year.
Stock Performance and Market Reaction
Following the announcement, Domo’s stock opened at $11.57 on October 7, 2023. The company holds a market capitalization of approximately $477.03 million and has a price-to-earnings ratio of -5.96, indicating a challenging financial landscape. The stock has fluctuated significantly over the past year, reaching a low of $6.01 and a high of $18.49. Domo’s 50-day and 200-day simple moving averages stand at $13.07 and $14.02, respectively.
Domo’s most recent earnings report, released on December 4, 2023, revealed an EPS of $0.01, surpassing the consensus estimate of -$0.05 by $0.06. The company reported revenue of $79.4 million, slightly exceeding analyst expectations of $79.03 million. Despite this, revenue decreased by 0.5% compared to the same quarter the previous year.
Institutional Investments and Insider Activity
Recent trading activity has shown a shift in institutional investments in Domo. Notably, Director Daniel David Daniel III sold 273,900 shares of the company’s stock on October 6, 2023, at an average price of $15.26, amounting to approximately $4.18 million. This transaction was disclosed in a filing with the SEC.
Several institutional investors have made changes to their positions in Domo recently. First Trust Advisors LP acquired a new stake valued at $9.74 million in the third quarter. Additionally, Bank of America Corp increased its stake by 129.8%, now holding 536,972 shares worth $7.50 million. Other significant investors include Arrowstreet Capital Limited Partnership and Millennium Management LLC, both of which have boosted their holdings significantly in recent months.
Currently, institutional investors and hedge funds own approximately 76.64% of Domo’s stock, reflecting strong institutional interest in the company.
Domo operates a cloud-based business intelligence platform, facilitating connections across organizations from executives to frontline employees. The platform provides real-time data access and insights, enhancing business management capabilities across various devices, including laptops, tablets, and smartphones.
As Domo navigates its financial challenges, it remains crucial for investors to monitor the company’s performance and strategic adjustments in the coming quarters.
