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.
Read the full article here:
Can DigitalGlobe Relaunch After A Reset To Expectations?
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