Digital Ally (DGLY) Stock Skyrocketing Today Following Earnings Results
NEW YORK (TheStreet) -- Shares of Digital Ally Inc. (DGLY) - Get Report are higher by 25.16% to $15.73 in mid-morning trading on Tuesday, after the company reported a year-over-year improvement in its 2014 fourth quarter earnings results.
For the most recent quarter the video and image surveillance equipment maker for law enforcement, security, and commercial applications said its non-GAAP adjusted income was 5 cents per diluted share, compared to a loss of 50 cents per diluted share for the 2013 fourth quarter.
Digital Ally's revenue for the quarter grew by 55% to $5.4 million versus $3.5 million from the same period last year.
"We look to 2015 with a high degree of optimism. We are seeing steady improvement in our domestic and international law enforcement channels, as well as in our commercial fleet business. Based upon information currently available, we believe that 2015 revenue should increase to approximately $25 million and that operating income should approximate $2.5 million, absent any unanticipated non-recurring expenses," company CEO Stanton Ross said in a statement.
Ross added that Digital Ally isn't forecasting net income or earnings per share at this time due to the unpredictability and volatility of the financial derivatives related to the company's convertible notes and warrants exercisable to purchase its common stock.
Separately, TheStreet Ratings team rates DIGITAL ALLY INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIGITAL ALLY INC (DGLY) a SELL. This is based on the dominance of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow."
You can view the full analysis from the report here: DGLY Ratings Report
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