Dolan Earnings: Here’s Why Investors are Happy Now

The Dolan Company (NYSE:DM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8.25%.

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The Dolan Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.01 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Decreased 18.02% to $54.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Dolan Company reported adjusted EPS income of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.13. It beat the average revenue estimate of $54.36 million.

Quoting Management: “First quarter operating trends were mixed, as our e-discovery business posted strong growth, while our mortgage-related business, National Default Exchange, or NDeX, remained depressed,” said James P. Dolan, chairman, chief executive officer, and president. “Our e-discovery business saw across the board strength in demand for both document review and technology processing. We remain encouraged about current business trends and the growth opportunities we see for our e-discovery business,” Dolan said.

Key Stats (on next page)…

Revenue decreased 13.09% from $62.94 million in the previous quarter. EPS increased to $0.01 in the quarter versus EPS of $-0.11 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 loss of $0 to a loss $0.06. For the current year, the average estimate has moved down from a profit of $0.11 to a loss of $0.18 over the last ninety days.

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