NEW YORK (TheStreet) -- Digi International (DGII) fell 15.3% to $10.24 on Friday after the company announced first-quarter earnings and revenue guidance that fell short of analysts expectations.
The company reported revenue of $47.3 million, up 0.7% from the $47 million it posted in the year-ago quarter. Net income was 3 cents per diluted share, compared to $1.2 million, or 5 cents per diluted share, in the same period one year earlier. The company expects revenue for the fiscal year 2014 to be between $195 million and $205 million, "with a most likely annual revenue of approximately $198 million" because it expects "a reduction in forecasted product purchases from certain customers." This range falls below consensus estimates.
"Company revenue did not meet expectations due to some customer push-outs," said chairman and CEO Joe Dunsmore in a company statement. "Growth products and services increased 5.9% over the prior year highlighted by strength in our cellular product line. We remain excited about our long-term prospects in the Internet of Things marketplace."
The stock had a volume of 498,767, compared to its average of 89,824. It hit a high of $10.88 and a low of $10.23 for the day. It also has a one-year high of $12.75 and a one-year low of $8.51.
TheStreet Ratings team rates DIGI INTERNATIONAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIGI INTERNATIONAL INC (DGII) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."