Digital River, Inc. First Quarter Earnings Sneak Peek

Digital River, Inc. (NASDAQ:DRIV) will unveil its latest earnings on Thursday, May 3, 2012. Digital River provides end-to-end global e-commerce and marketing solutions to a variety of companies in software, consumer electronics, computer games, video games, and other markets.

Digital River, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 19 cents per share, a decline of 20.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 20 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 19 cents during the last month. Analysts are projecting profit to rise by 2.5% versus last year to 81 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 15 cents, coming in at profit of 38 cents a share versus the estimate of net income of 23 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $100.2 million in revenue this quarter, a rise of 2.1% from the year-ago quarter. Analysts are forecasting total revenue of $405.5 million for the year, a rise of 1.9% from last year’s revenue of $398.1 million.

Analyst Ratings: Analysts seem relatively indifferent about Digital River with seven of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 19.5% to $4.3 million (12 cents a share) from $5.4 million (14 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 14.7% to $112 million from $97.7 million.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 13.1% in the second quarter of the last fiscal year and 12.3% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between February 1, 2012 and April 27, 2012, the stock price rose $2.54 (15.5%), from $16.37 to $18.91. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011, when shares rose for nine straight days, increasing 9.5% (+$2.92) over that span. It saw one of its worst periods between April 2, 2012 and April 10, 2012 when shares fell for six straight days, dropping 9.3% (-$1.75) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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