Digital Insight on Target

The online banking outfit will buy back some stock too.

Author:: TSC Staff
Publish date:: Feb 15, 2006 4:25 PM EST

Digital Insight

(DGIN)

matched fourth-quarter estimates, guided in line for 2006 and pledged to buy back $50 million in stock.

The Calabasas, Calif., online banking outfit made $7.6 million, or 21 cents a share, up from the year-ago $3.9 million, or 11 cents a share. Excluding certain costs, earnings rose to 25 cents a share from 17 cents a year earlier, beating the Thomson First Call analyst estimate by a penny. Revenue rose 16% from a year ago to $56.7 million.

"We added 296,000 new Internet banking users, setting a new quarterly record for organic growth, including a large implementation of active users from a competitive platform," said CEO Jeff Stiefler. "We also added 117,000 bill pay users, extending our recent momentum in bill-pay adoption that contributed to our improving revenue growth in the fourth quarter."

The company guided to pro forma earnings of 24 to 25 cents a share for the fourth quarter and $1.05 a share for the year, on revenue of $57 million for the quarter and $241.5 million for 2006. Those figures are in line with the Thomson estimates.

Ahead of the news Wednesday, Digital Insight rose $2.28 to $33.32.