Digital Generation (Nasdaq: DGIT) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Digital Generation beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
Digital Generation logged revenue of $92.8 million. The eight analysts polled by S&P Capital IQ predicted sales of $91.1 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $63.5 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 $0.31. The seven earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.04 for Q1 were 91% lower than the prior-year quarter's $0.44 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)

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 65.0%, 110 basis points worse than the prior-year quarter. Operating margin was 12.8%, 2,090 basis points worse than the prior-year quarter. Net margin was 1.1%, 1,890 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $104 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $418.4 million. The average EPS estimate is $1.75.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 246 members rating the stock outperform and 10 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Digital Generation a green thumbs-up, and one 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 $17.57.

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