The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Digital Generation's revenues will grow 48.4% and EPS will wane -11.4%.
The average estimate for revenue is $100.7 million. On the bottom line, the average EPS estimate is $0.39.
Last quarter, Digital Generation recorded revenue of $92.8 million. GAAP reported sales were 46% higher than the prior-year quarter's $63.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.31. GAAP EPS of $0.04 for Q1 were 91% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 64.5%, 160 basis points worse than the prior-year quarter. Operating margin was 12.8%, 2,090 basis points worse than the prior-year quarter. Net margin was 1.1%, 1,890 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $419.9 million. The average EPS estimate is $1.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 249 members out of 263 rating the stock outperform, and 14 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Digital Generation a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Digital Generation is outperform, with an average price target of $17.57.
Over the decades, small-cap stocks, like Digital Generation have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Digital Generation to My Watchlist.