Today we have a new high-potential recommendation from The Oberweis Report.
“DigitalGlobe, Inc. (DGI) is a leading global provider of commercial high-resolution earth imagery products and information services. Sourced from its own advanced constellation of three satellites, the company’s imagery solutions support a wide variety of uses within both domestic and international governments, including defense and intelligence, and civil agencies, location based services (LBS) and other verticals such as financial services, mining, telecommunications and oil and gas exploration.
“The company offers a range of products and services designed to enable customers to easily access and integrate imagery into their workflow. DigitalGlobe also has an extensive imagery archive that it believes is the largest, most up-to-date and comprehensive archive of high-resolution earth imagery commercially available, containing more than 2.0 billion square kilometers of imagery, with new imagery added every day. On July 23, 2012, the company announced an agreement to acquire competitor GeoEye Inc. (GEOY) for $20.27 in cash and 1.425 shares in DGI for each GEOY share. The deal is expected to close by March 31, 2013, pending regulatory approval. We believe there exist strong revenue and cost synergies for the combined company that will likely result in EPS accretion. In the company’s latest reported second quarter, sales increased approximately 23% to $101.8 million from $82.5 million in the second quarter of last year. DigitalGlobe reported earnings per share of $0.21 in the latest reported second quarter versus a loss in the same quarter of last year. Buy.”
- Jim Oberweis, The Oberweis Report, October 2012