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Why DigitalGlobe (DGI) Is Tanking on Wednesday

Stocks in this article: DGI

NEW YORK ( TheStreet) --  DigitalGlobe (DGI) shares are tanking on Wednesday after the company issued soft guidance and announced it had acquired energy imagery tech firm Spatial Energy for an undisclosed amount.

By noon, the stock had taken off 25.9% to $30.47.

Before the bell, the geospatial tech company reported fourth-quarter net income of 18 cents a share, 11 cents higher than analysts surveyed by Thomson Reuters had expected.

Revenue of $169.7 million was 35.3% higher than a year earlier but fell short of consensus by $16.2 million.

Over fiscal 2014, management forecasts revenue between $630 million and $660 million, lower than analyst expectations of $710.26 million. The Longmont, Colo.-based business gave no explanation as to the soft guidance.

The company also said it had acquired Spatial Energy, a digital imagery specialist for the energy industry. Spatial Energy helps "energy companies reduce the cost, time and effort associated with acquiring and analyzing complex geospatial information," according to the press release.

"The acquisition of Spatial Energy advances our position as the leading source of geospatial information and insight," said CEO Jeffrey R. Tarr in a statement.

"Spatial Energy's powerful cloud-based solution streamlines the process of acquiring and analyzing complex geospatial information and aligns with our goal of delivering insight that answers vital questions for our customers."

Also See: QEP Resources Plummets After Earnings Report

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