DigitalBridge Reports Strong Q1 Earnings, Misses Revenue Expectations
DigitalBridge (DBRG) announced quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.08 per share. This marks a significant increase from earnings of $0.01 per share during the same quarter last year. These earnings figures are adjusted for non-recurring items.
This earnings report reflects a surprise of 262.50%. In the previous quarter, DigitalBridge was expected to earn $0.08 per share but instead delivered $0.11, resulting in a surprise of 37.50%.
Over the last four quarters, the company has surpassed consensus EPS estimates twice. However, DigitalBridge, part of the Zacks REIT and Equity Trust industry, generated revenues of $45.45 million for the quarter ending March 2025, falling short of the Zacks Consensus Estimate by 56.61%. This is a decline compared to revenues of $74.39 million in the same quarter last year. The company has exceeded revenue estimates two times within the last four quarters.
The future trajectory of DigitalBridge’s stock price following this earnings release will largely depend on the insights provided by management during the upcoming earnings call. Since the start of the year, DigitalBridge shares have declined approximately 25.5%, while the S&P 500 has dropped 5.3%.
Future Outlook for DigitalBridge
Given DigitalBridge’s underperformance relative to the market this year, investors are keen to know what lies ahead for the stock. While definitive answers remain elusive, monitoring the company’s earnings outlook can be valuable. This outlook includes current consensus earnings expectations for upcoming quarters and recent changes in those expectations.
Research indicates a strong correlation between short-term stock movements and revisions in earnings estimates. Investors can track these changes independently or utilize tools like the Zacks Rank, known for effectively leveraging earnings estimate revisions.
Currently, the trend of estimate revisions for DigitalBridge appears mixed. While future revisions may shift following this latest earnings report, the company maintains a Zacks Rank #3 (Hold), suggesting its stock is expected to perform in line with the market in the short term. The consensus EPS estimate stands at $0.10 for the next quarter, with anticipated revenues of $110 million, and $0.36 with revenues of $416.73 million for the current fiscal year.
It is also essential to consider the industry’s outlook, as it can significantly impact stock performance. The REIT and Equity Trust sector ranks in the top 33% of over 250 Zacks industries, with the top 50% historically outperforming the bottom 50% by a factor of more than two to one.
Another contender in this sector, Claros Mortgage Trust, Inc. (CMTG), has yet to release results for the quarter ending March 2025, with a report expected on May 7. Claros is projected to report a quarterly loss of $0.32 per share, reflecting a year-over-year change of -260%. The consensus EPS estimate for this quarter has remained stable over the past 30 days, with revenues anticipated to reach $58.57 million, down 0.4% from the prior year.
Should You Invest in DigitalBridge Group, Inc. (DBRG)?
Before making an investment in DigitalBridge Group, Inc. (DBRG), it is prudent to evaluate the best stocks to consider over the next 30 days. Investors can refer to Zacks Investment Research for insights.
Since 1978, Zacks Investment Research has provided essential tools and independent research for investors. The Zacks Rank has historically outperformed the S&P 500 with an average annual gain of +24.08%, reflecting results from January 1, 1988, through May 6, 2024.
For additional investment insights, investors can access Zacks’ latest stock recommendations.
DigitalBridge Group, Inc. (DBRG): Free Stock Analysis report
Claros Mortgage Trust, Inc. (CMTG): Free Stock Analysis report
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
