Satellite imagery provider GeoEye, Inc. (GEOY) posted better-than-expected third quarter profit, growing its top line by a stellar 123%. The U.S. government, which is the company's largest customer, accounted for two-thirds of the quarterly revenues.
The company, which provides satellite imagery to Pentagon's National Geospatial-Intelligence Agency or NGA, said it extended its existing Service Level Agreement with the agency through March 31, 2010. The NGA collects and analyzes satellite imagery for national security and intelligence purposes.
The contract extension until March seems positive for the company, as rival DigitalGlobe says imagery from its WorldView-2 satellite launched on Oct. 8, will be commercially available about 90 days following the launch. This puts the date at around January 8 next year.
By launching WorldView-2, DigitalGlobe is trying to close the technological gap with GeoEye, whose latest satellite, GeoEye-1, went into service in February after being launched in September 2008.
Net income for the quarter declined to $12.5 million, or $0.61 per share from year-ago $31.6 million, or $1.57 per share. The year-ago period included a non-recurring tax benefit of $27.8 million or $1.38 per share.
Analysts were looking for 44 cents a share. Including the third quarter, the company has beat estimates in the last three quarters by an average 40%.
Income from operations more than tripled to $27. 7 million from $8.4 million last year, and operating margin rose to 34.7% from 23.5%.
Revenues surged to $79.9 million from $35.8 million last year. Domestic revenues represented 72.5% of total revenues, and International revenues 27.5%. Domestic revenues jumped 186%, while international revenues increased 41.3%.
Looking ahead, GeoEye currently expects full-year earnings of $1.30 per share to $1.45 per share, excluding a non-recurring charge related to the extinguishment of debt. Analysts are looking for $1.25 per share.
Revenue for the full-year is anticipated between $275 million and $280 million. The consensus estimate is $275.3 million.
In August, the company had forecast earnings of $1.10 per share to $1.37 per share for the full year, on revenue of $270 million to $280 million.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.