Digital River, Inc. Second Quarter Earnings Sneak Peek

Digital River, Inc. (NASDAQ:DRIV) will unveil its latest earnings on Thursday, July 28, 2011. Digital River, Inc 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. Microsoft Corp Earnings Cheat Sheet: Beats Estimates>>

Digital River, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 4 cents per share, a swing from net loss of 3 cents in the year earlier quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting net income of 75 cents per share, a rise of 50% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported profit of 24 cents per share versus a mean estimate of 20 cents. Two quarters ago, it reported net income of 20 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $92.3 million in revenue this quarter, a rise of 12.8% from the year ago quarter. Analysts are forecasting total revenue of $406.2 million for the year, a rise of 11.8% from last year’s revenue of $363.2 million.

Analyst Ratings: Analysts are bullish on Digital River as nine analysts rate it as a buy, none rate it as a sell and nine rate it as a hold.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 0.5% to $98.2 million in first quarter. The figure fell 6.8% in the fourth quarter of the last fiscal year from the year earlier, dropped 14.5% in third quarter of the last fiscal year from the year-ago quarter and 15.3% in the second quarter of the last fiscal year.

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 April 26, 2011 to July 21, 2011, the stock price had fallen $3.40 (-9.7%) from $34.97 to $31.57. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 10, 2011 when shares rose for 10-straight days, rising 15.6% (+$4.79) 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. Shares are down $2.85 (-8.3%) year to date.

(Source: Xignite Financials)

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