Digital River Earnings: River Flows Downward Due to Loss

Digital River Inc. (NASDAQ:DRIV) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. Shares are down 4.68%.

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Digital River Inc. Earnings Cheat Sheet

Results: Net loss increased to $200.1 million in the quarter versus a net gain of $4.34 million in the year-earlier quarter.

Revenue: Decreased 9.57% to $101.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Digital River Inc. reported adjusted net income of 31 cents per share. By that measure, the company beat the mean analyst estimate of $0.28. It beat the average revenue estimate of $98.2 million.

Quoting Management: “Our fourth quarter revenue and non-GAAP earnings performance was in line with our expectations,” said Tom Madison, Digital River’s chairman and interim CEO. “We continue to focus the organization on initiatives that drive revenue for clients. In addition during the quarter, we divested some non-core assets, reduced expenses in certain areas, as well as repurchased some of our outstanding convertible debt and common stock. In early January, we also completed our acquisition of LML Payment Systems. We plan to accelerate growth across our payments solution this year as we extend LML’s services to Europe and other geographies.”

Key Stats (on next page)…

Revenue increased 10.51% from $91.67 million in the previous quarter. Net loss increased 27310.96% from $730,000 in the previous quarter.

Looking Forward: 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 $0.26 to a profit $0.25. For the current year, the average estimate has moved down from a profit of $1 to a profit of $0.98 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)