DGI comes out tonight beating estimates .32 eps vs. .25 estimates and raising estimates from .80-.90 eps for the year to 1.00-1.05 eps. They also raised revenue estimates based on stronger then anticipated demand for their images.
Things seem to be heading in the right direction and with the new World View II bird coming online at the beginning of next year they will see new contracts rolling in. They will also have less of a Cap X burden as getting WV II ready and launched was not a cheap process.
However it is important to note that now they will begin deducted the expense from the 355 million of debt they have taken on at 10.5% which should work out to about 37.3 million dollars per year.
They currently have about 45 mil shares outstanding.
No doubt this is a risky business as any kind of malfunction in space on either of the World View satellites could spell disaster for DGI, however the growth that is facing this company over the next 12 months makes investing in spy satellites a risk that has some serious pay off potential if everything goes according to plan.
Long some DGI and feeling good about that right now.
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