Digital Ally Inc. (NASDAQ: DGLY) has announced its quarterly earnings, revealing a significant earnings per share (EPS) of ($0.59), which surpasses analysts’ estimates of ($2.01) by $1.42. The results, released on Wednesday, also indicated that the company generated $4.54 million in revenue, exceeding the forecasted $3.60 million, according to FiscalAI.
The company, which specializes in scientific and technical instruments, reported a negative net margin of 59.69% and a staggering negative return on equity of 538.11% for the quarter. This financial performance comes as Digital Ally continues to navigate a challenging market landscape.
Stock Performance and Market Analysis
Despite the earnings beat, shares of Digital Ally experienced a decline of 6.9%, trading down $0.10 to reach $1.34 during Friday’s trading session. A total of 28,776 shares changed hands, significantly lower than the average volume of 236,580. The company’s market capitalization stands at $2.24 million, with a price-to-earnings ratio of 0.00 and a beta of 0.97.
Digital Ally’s stock has seen a one-year low of $1.32 and a high of $1,960.00. The 50-day simple moving average is currently $1.88, while the two-hundred day simple moving average is $5.32. Additionally, the company reports a debt-to-equity ratio of 0.17, a quick ratio of 0.75, and a current ratio of 1.01.
Analysts have varied opinions on the stock. Aegis upgraded Digital Ally to a “strong-buy” rating on August 20, 2023, while Weiss Ratings maintained a “sell (e)” rating. Currently, one analyst has issued a strong buy recommendation, while another has rated the stock as a sell. According to data from MarketBeat.com, the consensus rating for Digital Ally is “Moderate Buy.”
Company Overview
Digital Ally Inc. focuses on producing and selling digital video imaging and related safety products primarily for law enforcement, security, and commercial applications across the United States. The company operates through three distinct segments: Video Solutions, Revenue Cycle Management, and Entertainment.
Among its offerings are in-car digital video mirror systems designed for law enforcement, as well as event recording systems for commercial fleets. The company also provides a suite of web-based tools for data management to assist fleet managers in organizing and managing both video and telematics information. Additionally, Digital Ally produces body-worn digital video systems for law enforcement and private security, and the VuLink ecosystem, which facilitates intuitive auto-activation functionality among multiple recording devices.
For those interested in staying updated, Digital Ally offers a daily newsletter through MarketBeat.com, providing concise summaries of the latest news and analyst ratings related to the company.
