Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why DigitalGlobe Shares Rocketed Higher

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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 satellite imagery company DigitalGlobe (NYSE: DGI  ) snapped a picture of success with its third-quarter earnings results yesterday, shooting the stock higher by as much as 13% today.

So what: There had been concern that a company whose largest customer is the United States government might face a weak outlook, but DigitalGlobe more than allayed those fears. For the quarter, DigitalGlobe reported a profit of $0.18, $0.04 better than expected, on revenue of $107.2 million, $9.5 million higher than the consensus. Furthermore, the company, which is purchasing rival GeoEye (Nasdaq: GEOY  ) for $453 million, upped its revenue growth forecast to a range of 18%-21% from a previous forecast of 16%.

Now what: I said back in August that DigitalGlobe's purchase of GeoEye was going to make for a monster growth company, and that short sellers piling into the stock were barking up the wrong tree. Needless to say, it's nice being right once in a while. The company has been doing a good job of boosting international orders for its products in light of weaker expected U.S. government spending, having won contracts from the Indian government, and expanding its contract with AutoNavi Holdings (Nasdaq: AMAP  ) . With its satellite imagery systems now generating recurring revenue, I don't think there's much that stands in the way of it heading higher.

Craving more input? Start by adding DigitalGlobe to your free and personalized Watchlist so you can keep up on the latest news with the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

Motley Fool newsletter services have recommended buying shares of GeoEye. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2087674, ~/Articles/ArticleHandler.aspx, 10/20/2016 5:49:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,162.35 -40.27 -0.22%
S&P 500 2,141.34 -2.95 -0.14%
NASD 5,241.83 -4.58 -0.09%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/20/2016 4:02 PM
DGI $26.35 Down -0.20 -0.75%
DigitalGlobe CAPS Rating: **
GEOY.DL $0.00 Down +0.00 +0.00%
GeoEye CAPS Rating: *****
AMAP.DL $0.00 Down +0.00 +0.00%
AutoNavi Holdings CAPS Rating: **