The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DigitalGlobe beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded.
Margins grew across the board.
DigitalGlobe reported revenue of $125.4 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $111.8 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $99.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The seven earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS were $0.36 for Q4 versus -$0.61 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 quarter, gross margin was 82.4%, 660 basis points better than the prior-year quarter. Operating margin was 23.4%, much better than the prior-year quarter. Net margin was 13.6%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $129.2 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $646.8 million. The average EPS estimate is -$0.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 97 members out of 103 rating the stock outperform, and six members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give DigitalGlobe a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DigitalGlobe is outperform, with an average price target of $27.75.
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