[08-02-12] Earth imagery provider DigitalGlobe<\/b> reported a surprising 23 percent increase in its 2012 second-quarter revenues to $102 million, beating analysts\u2019 consensus of $93 million and marking the company\u2019s third consecutive quarter of double-digit growth. Just weeks after DigitalGlobe announced its merger with former rival GeoEye, the company released its latest financial results Aug. 1 showing a vast improvement in its EBITDA margins to 47.1 percent and deliverable EBITDA at $48 million, compared to market forecasts of $40 million.<\/p>\n
DigitalGlobe management credited strong growth in its government business for the strong performance. Raymond James<\/b> Analyst Chris Quilty highlighted the fact that, despite macro budget headwinds created by the merger, DigitalGlobe\u2019s Defense & Intelligence segment grew 27 percent year-over-year, which were aided by an approximate $11 million bump in SLA payments and a surprising $5.5 million increase in value-added services (VAS).
\n \u201cWhile the SLA bump should be sustainable, management is less sanguine regarding future VAS funding levels,\u201d Quilty said in an Aug. 1 research note. \u201cWe reiterate our \u2018strong buy\u2019 rating and $25 price target for DigitalGlobe after the company easily beat the consensus second quarter 2012 forecast and raised its full-year outlook in the face of material merger and acquisition costs that were above the line. While not reflected in our model, we believe the proposed acquisition of GeoEye will significantly boost DigitalGlobe\u2019s growth and profitability, while decreasing the company\u2019s risk profile, including government market exposure.\u201d
\n DigitalGlobe\u2019s commercial revenues also increased 10 percent compared with the same period in 2011, with sales to international civil customers in markets such as Russia and China increasing 67 percent. The company\u2019s revenues from location based service (LBS) providers, however, declined $4 million due to a single customer non-renewal.
\nThe company\u2019s backlog rose 32 percent to $355 million compared with the corresponding period in 2011.
\n Quilty noted that an increasing percentage of DigitalGlobe\u2019s customers are committing to long-term contracts as opposed to one-time orders, as recurring revenues now account for approximately 85 percent of the company\u2019s annual sales.
\n \u201cWe are raising our 2012 EBITDA forecast for DigitalGlobe by 2 percent to $182 million, while maintaining our 2013 estimate of $213 million,\u201d said Quilty. \u201cOur $25 price target assumes that DigitalGlobe can trade at a multiple of 6.5 over our 2013 EBITDA estimate of $213 million, which is within the stock\u2019s three-year historical range. Our 2013 EBITDA forecast does not reflect the impact of the proposed GeoEye acquisition, which could include an additional $13 per share in value to DigitalGlobe.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
[08-02-12] Earth imagery provider DigitalGlobe reported a surprising 23 percent increase in its 2012 second-quarter revenues to $102 million, beating analysts\u2019 consensus of $93 million and marking the company\u2019s third consecutive quarter of double-digit growth. Just weeks after DigitalGlobe announced its merger with former rival GeoEye, the company released its latest financial results Aug. 1 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-82696","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/82696"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=82696"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/82696\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=82696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=82696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=82696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}