Digi International Increases Sales but Misses Estimates on Earnings
Digi International (NAS: DGII) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Digi International met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins grew, net margins grew.
Digi International booked revenue of $47.0 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $47.1 million on the same basis. GAAP reported sales were 0.7% higher than the prior-year quarter's $46.7 million.
EPS came in at $0.04. The five earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS of $0.05 for Q1 were 67% higher than the prior-year quarter's $0.03 per share.
For the quarter, gross margin was 52.1%, 140 basis points worse than the prior-year quarter. Operating margin was 3.6%, 130 basis points better than the prior-year quarter. Net margin was 2.6%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $51.9 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $206.8 million. The average EPS estimate is $0.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 107 members out of 114 rating the stock outperform, and seven members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Digi International a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Digi International is hold, with an average price target of $11.25.
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The article Digi International Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.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. The Motley Fool has no position in any of the stocks mentioned. 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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