Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of DigitalGlobe (NYSE: DGI ) have plunged today, down by as much as 15% after the company reported earnings yesterday.
So what: Revenue in the fourth quarter was $97.7 million, with earnings per share coming in at $0.10. The top line registered a healthy beat, but the bottom line fell $0.02 short of analysts' expectations.
Now what: On its surface, this looks like a classic overreaction to a minor miss on profit, and shares now stand at multiyear lows. CEO Jeffrey Tarr did have some cautious words: "We believe that a more restrictive government funding environment, while not desirable, will serve to highlight our competitive advantages." Jefferies is defending the stock by maintaining its buy rating, although it did lower its price target from $30 to $24, which still represents significant upside from current prices.
Interested in more info on DigitalGlobe? Add it to your watchlist by clicking here.
RSS Headlines
Fool UK
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Be the first one to comment on this article.