Overheated expectations for DigitalGlobe's (NYSE:DGI) commercial business came home to roost earlier this year, when weak guidance after fourth quarter earnings sent the shares down 30%. Since then, management has seen a successful satellite launch and the U.S. government agree to allow them to sell higher-resolution images to its customers, as well as announcing a share buyback. Although the commercial opportunity is still a "show me story", DigitalGlobe does have the advantage of offering the best quality images in the market. Revised expectations still offer upside, but the company would probably serve its interests more effectvely by better managing analyst expectations.
Will Higher Resolution Mean Higher Profits?
DigitalGlobe saw its WorldView-3 satellite successfully launched into orbit two...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|