Internet domain registrar and web hosting company GoDaddy, Inc. (GDDY) recently reported mixed results for the second quarter ended June 30, 2021. Following the news, shares of the company remained unchanged in the extended trading session at $83.50.
Quarterly revenues stood at $931.3 million, up 15.5% from the same period last year, and surpassed the consensus estimate of $919.7 million. Revenues from Business Applications and Domains saw year-over-year growth of 21.8% and 18.2%, respectively.
The company reported EPS of $0.27, which compares favorably with a loss of $4.06 reported last year. However, it missed the consensus estimate of $0.32
Meanwhile, the company expects to report revenues of $945 million in the third quarter. Analysts expect the same to be at $947.9 million. For the full year, the company anticipates revenues of $3.75 billion. Consensus on the Street is $3.74 billion.
The CEO of GoDaddy, Aman Bhutani, said, “We’re pleased with the strong quarter, and we’re even more excited about the incredible journey we see ahead for GoDaddy. With strong secular tailwinds and great products on the way, we’re excited to do more for Everyday Entrepreneurs than we’ve ever been able to do before.” (See GoDaddy stock chart on TipRanks)
Recently, Morgan Stanley analyst Elizabeth Elliot initiated a Hold rating on the stock with a price target of $95, which implies upside potential of 13.8% from current levels.
According to Elliot, the company’s acquisition-led expansion strategy is expected to limit any rerating of the shares in the short term.
Consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average GoDaddy price target of $103.50 implies upside potential of 23.9% from current levels.
GoDaddy scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares of the company have gained 12.2% over the past year.
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