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What: Shares of DigitalGlobe (NYS: DGI) have plunged today, down by as much as 15% after the company reported earnings yesterday.
So what: Revenue in the fourth quarter was $97.7 million, with earnings per share coming in at $0.10. The top line registered a healthy beat, but the bottom line fell $0.02 short of analysts' expectations.
Now what: On its surface, this looks like a classic overreaction to a minor miss on profit, and shares now stand at multiyear lows. CEO Jeffrey Tarr did have some cautious words: "We believe that a more restrictive government funding environment, while not desirable, will serve to highlight our competitive advantages." Jefferies is defending the stock by maintaining its buy rating, although it did lower its price target from $30 to $24, which still represents significant upside from current prices.
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