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.
Looking for alternatives to DigitalGlobe? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add DigitalGlobe to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.