The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DigitalGlobe beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share dropped to a loss.
Gross margins dropped, operating margins grew, and net margins contracted.
DigitalGlobe notched revenue of $97.7 million. The 10 analysts polled by S&P Capital IQ foresaw sales of $93 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $83.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.10. The nine earnings estimates compiled by S&P Capital IQ forecast $0.12 per share on the same basis. GAAP EPS were -$0.58 for Q4 versus $0.03 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 81.7%, 570 basis points worse than the prior-year quarter. Operating margin was 15.6%, 100 basis points better than the prior-year quarter. Net margin was -27.6%, 2,920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $89.4 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $380.1 million. The average EPS estimate is $0.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 78 members rating the stock outperform and two members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 19 give DigitalGlobe a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DigitalGlobe is outperform, with an average price target of $27.86.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.