DigitalGlobe Earnings Are on Deck

DigitalGlobe (NYSE: DGI  ) is expected to report Q4 earnings on Feb. 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DigitalGlobe's revenues will grow 14.4% and EPS will expand 180.0%.

The average estimate for revenue is $111.8 million. On the bottom line, the average EPS estimate is $0.28.

Revenue details
Last quarter, DigitalGlobe reported revenue of $107.2 million. GAAP reported sales were 31% higher than the prior-year quarter's $81.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.18. GAAP EPS of $0.18 for Q3 were much higher than the prior-year quarter's $0.02 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 79.9%, 120 basis points worse than the prior-year quarter. Operating margin was 22.6%, 1,470 basis points better than the prior-year quarter. Net margin was 7.9%, 660 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $407.8 million. The average EPS estimate is $0.76.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 96 members out of 102 rating the stock outperform, and six members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give DigitalGlobe 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 DigitalGlobe is outperform, with an average price target of $23.33.

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