The 10-second takeaway
For the quarter ended March 31 (Q1), DigitalGlobe missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share didn't move. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
DigitalGlobe chalked up revenue of $127.6 million. The nine analysts polled by S&P Capital IQ wanted to see a top line of $137.8 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $87.0 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 five earnings estimates compiled by S&P Capital IQ predicted -$0.36 per share. Non-GAAP EPS of $0.08 were the same as the prior-year quarter. GAAP EPS were -$0.96 for Q1 compared to $0.08 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 67.9%, much worse than the prior-year quarter. Operating margin was -31.7%, much worse than the prior-year quarter. Net margin was -47.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $159.2 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $644.9 million. The average EPS estimate is -$0.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 100 members out of 106 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give DigitalGlobe 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 DigitalGlobe is outperform, with an average price target of $32.06.
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