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Are You Expecting This from Digital River?

Monday - 4/29/2013, 2:00am  ET

Digital River is expected to report Q1 earnings on May 2. 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 Digital River's revenues will grow 0.2% and EPS will drop -33.3%.

The average estimate for revenue is $102.6 million. On the bottom line, the average EPS estimate is $0.20.

Revenue details
Last quarter, Digital River reported revenue of $101.3 million. GAAP reported sales were 9.5% lower than the prior-year quarter's $112.0 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, non-GAAP EPS came in at $0.31. GAAP EPS were -$6.12 for Q4 against $0.12 per share for the prior-year quarter.

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 82.8%, 280 basis points worse than the prior-year quarter. Operating margin was 1.5%, much worse than the prior-year quarter. Net margin was -197.4%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $395.5 million. The average EPS estimate is $0.78.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 297 members out of 328 rating the stock outperform, and 31 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Digital River a green thumbs-up, and five 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 $16.00.

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This article was originally published as Are You Expecting This from Digital River?on Fool.com

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