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DigitalGlobe 3Q Earnings Top Wall Street Forecasts; US Gov’t Sales Up 26%

DigitalGlobeDigitalGlobe (NYSE: DGI) has reported third quarter earnings of 12 cents per share, a figure 1 cent above the consensus Wall Street estimate.

The geospatial satellite services contractor posted a profit of $9.6 million compared to $900, 000 and no earnings per share reported for the same quarter last year.

Revenue increased 12.09 percent from the prior year period to $173.3 million versus the consensus Wall Street forecast of $180.34 million.

Westminster, Colo.-based DigitalGlobe provides satellite imagery to government agencies and commercial customers.

U.S. government sales climbed 26.42 percent year-over-year to $111 million on the renewal of DigitalGlobe’s imagery services agreement with the National Geospatial-Intelligence Agency for a fourth year.

Commercial sector revenue declined 6.73 percent from the prior year period to $62.3 million on impacts from oil and gas prices and slowing demand in international markets.

CEO Jeffrey Tarr unveiled to investors a strategy shift for the commercial segment that includes an extension of some earth imagery products used by government agencies.

The company will also aim to replace its WorldView-1 and WorldView-2 satellites sometime in 2017 or 2018, Tarr said.

DigitalGlobe lowered its 2015 revenue guidance to between $685 million and $700 million from the prior $725 million-to-$750 million range.

Shares in DigitalGlobe have declined 35.74 percent since the year’s start and fallen 35.85 percent over 12 months.

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