Why it's happening: However, Tarr also elaborated "While top-line growth may be somewhat moderated in the second half relative to our original expectations, we still expect revenue to grow at a double-digit rate driven by new capacity, new products and new customers."
As such, DigitalGlobe reiterated its 2015 outlook despite its solid second-quarter beat. As it stands, that outlook calls for full-year revenue of $725 million to $750 million, adjusted EBITDA of $355 million to $375 million, and capital expenditures of $110 million. Wall Street's models called for revenue of $735.2 million, or slightly below the midpoint of DigitalGlobe's expected range, and earnings of $0.27 per share.
It seems silly the market would punish DigitalGlobe for maintaining an outlook that's already above analysts' expectations. But to be fair, our market is a forward-looking machine, and investors are likely worried DigitalGlobe's second-half weakness might be a sign of things to come. I'm not convinced that's necessarily the case just yet, but it's no surprise the market is taking a step back from DigitalGlobe stock today.
Steve Symington has no position in any stocks mentioned. The Motley Fool recommends DigitalGlobe. 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.