Digital Generation (Nasdaq: DGIT ) is expected to report Q3 earnings on Nov. 9. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Digital Generation's revenues will grow 13.3% and EPS will shrink -140.0%.
The average estimate for revenue is $95.9 million. On the bottom line, the average EPS estimate is $0.06.
Last quarter, Digital Generation logged revenue of $96.3 million. GAAP reported sales were 42% higher than the prior-year quarter's $67.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at -$0.01. GAAP EPS were -$0.01 for Q2 against $0.37 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 63.3%, 290 basis points worse than the prior-year quarter. Operating margin was 12.3%, 1,970 basis points worse than the prior-year quarter. Net margin was -0.3%, 1,540 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $395.8 million. The average EPS estimate is $0.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 247 members out of 260 rating the stock outperform, and 13 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Digital Generation a green thumbs-up, and two 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 $16.57.
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