Digital Generation (Nasdaq: DGIT ) is expected to report Q4 earnings around Feb. 15. 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 wither -1.2% and EPS will expand 31.3%.
The average estimate for revenue is $107.0 million. On the bottom line, the average EPS estimate is $0.21.
Last quarter, Digital Generation logged revenue of $93.8 million. GAAP reported sales were 11% higher than the prior-year quarter's $84.6 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 -$7.96. GAAP EPS were -$7.96 for Q3 versus -$0.10 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 63.0%, 360 basis points worse than the prior-year quarter. Operating margin was 9.2%, 860 basis points worse than the prior-year quarter. Net margin was -234.2%, 23,090 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $390.0 million. The average EPS estimate is -$7.73.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 239 members out of 252 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 $16.43.
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