Digital River Beats Analyst Estimates on EPS
Digital River (NAS: DRIV) reported earnings on Feb. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Digital River beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Gross margins increased, operating margins dropped, and net margins contracted.
Digital River booked revenue of $112.0 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $104.2 million. Sales were 15% higher than the prior-year quarter's $97.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.45. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.33 per share on the same basis. GAAP EPS of $0.12 for Q4 were 14% lower than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 85.6%, 250 basis points better than the prior-year quarter. Operating margin was 5.3%, 280 basis points worse than the prior-year quarter. Net margin was 3.9%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $104.4 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $420.1 million. The average EPS estimate is $1.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 317 members out of 343 rating the stock outperform, and 26 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Digital River a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Digital River is hold, with an average price target of $23.88.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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