Digital River Inc. Fourth Quarter Earnings Sneak Peek

Digital River, Inc. (NASDAQ:DRIV) will unveil its latest earnings on Thursday, February 2, 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 estimate of analysts is for profit of 23 cents per share, a rise of 15% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 22 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 23 cents during the last month. Analysts are projecting profit to rise by 22% versus last year to 61 cents.

Past Earnings Performance: Last quarter, the company reported net income of 19 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: On average, analysts predict $104.5 million in revenue this quarter, a rise of 7% from the year ago quarter. Analysts are forecasting total revenue of $390.3 million for the year, a rise of 7.4% from last year’s revenue of $363.2 million.

Analyst Ratings: Analysts seem relatively indifferent about Digital River with seven of 13 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 5.9% to $5.5 million (15 cents a share) from $5.9 million (15 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 12.3% to $95.4 million from $85 million.

Key Stats:

The company’s revenue has risen for two straight quarters. In the second quarter, the figure rose 13.1%.

Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Akamai Technologies, Inc. (NASDAQ:AKAM), EasyLink Services Intl. Corp. (NASDAQ:ESIC), PFSweb, Inc. (NASDAQ:PFSW), eBay Inc. (NASDAQ:EBAY), GSI Commerce, Inc. (NASDAQ:GSIC), Oracle Corporation (NASDAQ:ORCL), Premiere Global Services, Inc. (NYSE:PGI), Tier Technologies, Inc. (NASDAQ:TIER), and Symantec Corporation (NASDAQ:SYMC).

Stock Price Performance: During October 31, 2011 to January 27, 2012, the stock price had fallen $2.15 (-11.7%) from $18.33 to $16.18. 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, rising 9.5% (+$2.92) over that span. It saw one of its worst periods between April 6, 2011 and April 20, 2011 when shares fell for 11-straight days, falling 9.2% (-$3.53) over that span.

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

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