The Dolan Company Earnings: Here’s Why Investors are Not Happy Now

The Dolan Company (NYSE:DM) delivered a profit and beat Wall Street’s expectations, BUT 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 4.33%.

The Dolan Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 37.5% to $0.10 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Decreased 25.66% to $47.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Dolan Company reported adjusted EPS income of $0.10 per share. By that measure, the company beat the mean analyst estimate of $-0.08. It missed the average revenue estimate of $53.29 million.

Quoting Management: “Recent operating trends continued in the second quarter, as our e-discovery business posted very strong growth, while our mortgage-related business, National Default Exchange, or NDeX, remained under pressure,” said James P. Dolan, chairman, chief executive officer, and president. “We saw balanced demand for both our document review and technology processing segments within the e-discovery business. We appreciate our long-term customers and we are encouraged about our new client opportunities,” Dolan said.

Key Stats (on next page)…

Revenue decreased 13.35% from $54.7 million in the previous quarter. EPS increased to $0.10 in the quarter versus EPS of $-0.25 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 $0 to a loss $0.03. For the current year, the average estimate has moved down from a loss of $0.26 to a loss of $0.38 over the last ninety days.

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

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