Digital River Earnings Preview: Can This Streak Continue?

Digital River (NASDAQ:DRIV) will report earnings after markets close on Thursday, May 2nd. Digital River, Inc. provides comprehensive electronic commerce outsourcing solutions to software publishers and online retailers. The Company also provides data mining and merchandising services to assist clients in increasing Internet page view traffic to web sites.

Here is your Cheat Sheet to Digital River Earnings:

Earnings Expectations: Analysts expect earnings of $0.20 per share on revenues of $102.61 million.

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 $0.19 to a profit $0.11. For the current year, the average estimate is a profit of $0.72, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Digital River has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 394.23 403.77 363.23 398.14 386.22
Diluted EPS ($) 1.55 1.32 0.41 0.46 -5.90

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

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 112.02 102.44 90.77 91.67 101.34
Diluted EPS ($) 0.1222 0.14 0.01 -0.02 -6.090

Past Performance:
Digital River 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]