Software developer GitLab (NASDAQ:GTLB) is clearly in favor on Wall Street. GTLB stock is up 8% so far today. Apparently, investors are excited about an announcement concerning the company’s fiscal 2023 earnings guidance.
It hasn’t been easy for GTLB stock investors to stay the course, but the past month has provided some encouragement. Back in early June, GitLab disclosed outstanding revenue results for the first quarter of fiscal 2023. The company generated $87.4 million in quarterly revenue, up 75% year-over-year (YOY).
Furthermore, GitLab appears to be closing its profitability gap. In Q1, the company reported an GAAP earnings per share (EPS) loss of 18 cents. That was an improvement over the prior Q1 EPS loss of 53 cents.
Fast forward to July 4. Although it’s not shown on GitLab’s news releases page, the company has reportedly provided an update on its EPS guidance for fiscal 2023. GitLab appears to be anticipating a full-year EPS loss in the range of 89 cents to 93 cents.
What’s Happening With GTLB Stock?
GTLB stock investors could definitely use a positive catalyst right now. Shares are trading significantly lower than the 52-week high of $137. Could today’s price action signal the start of a recovery?
GitLab’s forward guidance for a full-year EPS loss may not sound like great news. However, the guidance is more optimistic than the analyst consensus EPS loss of a 97 cents for the year. So, it’s actually good news.
Investors also have an upgrade from Goldman Sachs analyst Kash Rangan to celebrate. Rangan changed his rating on GTLB stock from “neutral” to “buy,” issuing an ambitious price target of $80. The analyst offered high praise for the company. Rangan says GitLab provides a “best-of-breed platform” in a total addressable market (TAM) worth $40 billion.
If GTLB stock is to revisit $80, it will be quite a surprising feat. Still, the optimism is duly noted. Besides, GitLab’s updated full-year outlook suggests a turnaround may be underway.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.