Digital Generation (Nasdaq: DGIT) reported earnings on Aug. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Digital Generation missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Revenue details
Digital Generation notched revenue of $96.3 million. The eight analysts polled by S&P Capital IQ expected a top line of $100.7 million on the same basis. 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.
EPS details
EPS came in at $0.29. The four earnings estimates compiled by S&P Capital IQ forecast $0.39 per share. 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.
Margin details
For the quarter, gross margin was 63.8%, 240 basis points worse than the prior-year quarter. Operating margin was 12.3%, 1,930 basis points worse than the prior-year quarter. Net margin was -0.3%, 1,540 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $99.3 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $406.7 million. The average EPS estimate is $1.24.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 250 members out of 265 rating the stock outperform, and 15 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 $16.57.
- Add Digital Generation to My Watchlist.
