Digi International Earnings Preview: Can This Streak Continue?

Digi International (NASDAQ:DGII) will report earnings after markets close on Thursday, July 25th. Digi International Inc. provides communications adapters that enable open systems, server-based applications. The Company also produces local area networking products. Digi markets its products through a global network of distributors, systems integrators, value added resellers, and original equipment manufacturers.

Here is your Cheat Sheet to Digi International Earnings:

Earnings Expectations: Analysts expect earnings of $0.06 per share on revenues of $49.03 million. Currently, the company’s P/E ratio stands at 39.54.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.13 to a profit $0.09. For the current year, the average estimate is a profit of $0.23, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Digi International has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 185 166 183 204 191
Diluted EPS ($) 0.47 0.16 0.35 0.43 0.29

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 47.63 47.25 46.99 48.20
Diluted EPS ($) 0.09 0.09 0.05 0.04

Past Performance:
Digi International has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)