Digi International stock climbs after fiscal 1Q earnings beat on strong cellular products revenue

Digi International Inc (NASDAQ:DGII) shares climbed after the provider of Internet of Things connectivity products and solutions posted fiscal first-quarter earnings that beat Wall Street estimates.

For the quarter ended December 2018, the company posted earnings of $0.04 per share on revenue of $62.3 million. The consensus estimate was a loss of $0.01 per share on revenue of $58.3 million. Revenue grew 37.9% on a year-over-year basis.

Investors sent shares of the company up 11.8% higher to $13.26.

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“A great start to fiscal 2019 is especially encouraging since the first quarter is traditionally our slowest quarter of the year,” said Digi International CEO Ron Konezny. “Our transformation to a premier hardware-enabled, software, services and subscription company is accelerating.”

Digi said it experienced growth across most of its product categories with the highest growth in its cellular product division. The company offers widely used cellular routers that provide connectivity for devices over a cellular data network, cellular gateway and radio frequency products that utilize a range of wireless protocols for PC-to-device or device-to-device connectivity.

Looking ahead

The company said it expects fiscal second-quarter earnings of $0.01 to $0.05 per share on revenue of $59 million to $63 million and fiscal 2019 earnings of $0.30 to $0.45 per share on revenue of $245 million to $255 million. The company’s previous guidance was for fiscal year earnings of $0.20 to $0.35 per share.

The current consensus earnings estimate is $0.04 per share on revenue of $60.4 million for the quarter ending March 31, 2019, and $0.30 per share on revenue of $249.8million for the year ending September 30, 2019.

The Minnetonka, Minnesota company provides machine-to-machine networking hardware and solutions that enable the connection, monitoring and control of local or remote physical assets by electronic means.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors