DigitalGlobe Earnings: Here’s Why the Stock is Falling Now

DigitalGlobe, Inc. (NYSE:DGI) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.52%.

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DigitalGlobe, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.96 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Rose 46.67% to $127.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DigitalGlobe, Inc. reported adjusted EPS loss of $0.96 per share. By that measure, the company missed the mean analyst estimate of $-0.49. It missed the average revenue estimate of $136.8 million.

Quoting Management: “We are pleased to have successfully closed our combination with GeoEye in the quarter, and are on track in executing our integration plan,” said Jeffrey R. Tarr, Chief Executive Officer. “We are more confident than ever in our ability to achieve 50 percent EBITDA margins after six quarters and deliver more than $1.8 billion in synergies. Taken together with our larger and more diverse revenue base, and the broader capabilities we are now able to offer our customers, we are well on our way toward our aspiration of building the global leader in geospatial information and insight.”

Key Stats (on next page)…

Revenue increased 1.75% from $125.4 million in the previous quarter. EPS decreased to $-0.96 in the quarter versus EPS of $0.36 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 $0.31 to a loss $0.15. For the current year, the average estimate has moved down from a profit of $1.27 to a loss of $0.53 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]