DocuSign shares rise premarket on e-signature group's inclusion in S&P MidCap 400

Investing.com -- Shares in DocuSign (NASDAQ:DOCU ) rose by more than 5% in premarket trading on Tuesday after S&P Dow Jones Indices announced that the software company will replace MDU Resources (NYSE:MDU ) Group in the S&P MidCap 400.

In a statement on Tuesday, S&P Dow Jones Indices added that MDU Resources will then take the place of Chuy's Holdings (NASDAQ:CHUY ) in the S&P SmallCap 600 .

A deal that will see Chuy's acquired by Olive Garden-owner Darden Restaurants (NYSE:DRI ) is expected to be completed soon, S&P Dow Jones Indices noted. MDU Resources, meanwhile, has said it intends to spin-off its Everus construction services unit later this month.

The changes are due to take effect on Oct. 11, S&P Dow Jones Indices said.

In September, DocuSign reported better-than-expected second-quarter earnings and revenue. The e-signature and agreement cloud company posted adjusted earnings per share of $0.97, surpassing analyst estimates of $0.81. Revenue for the quarter reached $736 million, up 7% year-on-year and exceeding Wall Street consensus estimates of $727.2 million.

Meanwhile, the company raised its forecast for third-quarter revenue to between $743 million and $747 million, compared to a prior range of $725 million to $729 million.

For the full fiscal year 2025, DocuSign expects sales in the range of $2.94 billion to $2.952 billion.

CEO Allan Thygesen highlighted the company's progress, stating, "DocuSign continued its evolution with improved business stability and increased efficiency, resulting in record operating profit." He also highlighted the launch of the company's artificial intelligence-powered contract management platform, dubbed Intelligent Agreement Management (IAM), expressing optimism around early results and customer feedback.

"Overall, preliminary IAM adoption momentum is tracking as planned, and we look forward to the continued rollout to additional segments and geographies throughout the rest of the fiscal year," Thygesen told analysts in a post-earnings call.

Source: Investing.com