GitLab Inc. (GTLB) is set to report third-quarter earnings after the market closes on Tuesday, Dec. 2, and Wall Street's most accurate forecasters have been recalibrating their expectations ahead of the print.
The consensus view calls for the Providence, Rhode Island-based DevOps platform company to post quarterly earnings of 20 cents per share, a decline from 23 cents in the same period last year. Revenue is expected to reach $239.32 million, representing solid growth from the $196.05 million reported a year earlier.
GitLab has a recent history of exceeding expectations. Back on Sept. 3, the company delivered quarterly earnings of 24 cents per share, crushing the analyst estimate of 16 cents. Revenue also beat consensus, coming in at $235.96 million versus expectations of $227.25 million.
Shares of GitLab rose 1.2% to close at $41.06 on Friday.
What the Best Forecasters Are Saying
Among Wall Street's most accurate analysts covering GitLab, recent ratings have painted a mixed picture of sentiment heading into earnings:
- Truist Securities analyst Joel Fishbein, who maintains a 74% accuracy rate, downgraded the stock from Buy to Hold on Nov. 19 and slashed his price target from $55 to $44. That's a notable shift from one of the more reliable voices on the Street.
- Morgan Stanley analyst Sanjit Singh kept his bullish stance intact with an Overweight rating on Oct. 6 and actually raised his price target from $56 to $60. Singh's accuracy rate sits at 54%.
- Wells Fargo analyst Ryan Macwilliams initiated coverage with an Equal-Weight rating and $50 price target on Oct. 1. Macwilliams has a 60% accuracy rate.
- Guggenheim analyst Howard Ma launched coverage with a Buy rating and the most aggressive price target of $70 on Sept. 11. Ma's accuracy rate is 52%.
- Mizuho analyst Gregg Moskowitz maintained his Outperform rating but trimmed his price target from $55 to $52 on Sept. 5. With a 68% accuracy rate, Moskowitz ranks among the more reliable GitLab watchers.
The divergence in analyst views suggests Tuesday's earnings report could be a pivotal moment for the stock. With price targets ranging from $44 to $70 among top-rated analysts, there's clearly disagreement about GitLab's near-term trajectory and valuation.
