Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of DigitalGlobe (DGI) jumped as much as 15% in early trading after the satellite imaging company reported earnings. Shares settled in with an 8% gain late in the day.
So what: First-quarter revenue was up 23% to $156.5 million, while net loss for common shareholders was $0.6 million, or $0.01 per share. The results topped expectations of a $0.07 per-share loss and gave hope that 2014 could actually be a profitable year.
Now what: Margins are expected to improve through the year, with fourth-quarter EBITDA margins hitting 50%. Shares still trade at an incredible 100 times 2015 estimates, so the stock is pricing in a lot of growth. I'm not buying in today, but if growth continues, margins rise, and the stock pulls back it's an interesting market for investors. Of course, that's a lot of "ifs."
