The 10-second takeaway
For the quarter ended March 31 (Q1), DigitalGlobe beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins contracted, operating margins expanded, and net margins expanded.
DigitalGlobe logged revenue of $87 million. The 10 analysts polled by S&P Capital IQ anticipated revenue of $83.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $77.1 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 $0.08. The nine earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. GAAP EPS were $0.08 for Q1 against -$0.02 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 79.3%, 540 basis points worse than the prior-year quarter. Operating margin was 11.6%, 380 basis points better than the prior-year quarter. Net margin was 4.4%, 530 basis points better 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 $0.07.
Next year's average estimate for revenue is $370.3 million. The average EPS estimate is $0.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 87 members rating the stock outperform and three members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 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 $22.58.
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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.