Dolan Media (DM) is growing its foreclosure revenue through acquisitions and analysts are raising expectations for the industry leader.
Company Description
Dolan Media provides professional services and information for the financial, legal, and real estate sectors.
Revenue Up 30%
Dolan’s third-quarter results, which were released on Nov 6, included revenue of $62.3 million, up 30.2% since last year. Earnings per shares came in at 20 cents, topping the Zacks Consensus Estimate by 4 cents.
This was the company’s fourth consecutive earnings surprise.
Acquisitions Hitting the Books
The deal for Barret-NDEx, which adds to the company’s mortgage default business, added almost $24 million in revenue. Another deal expanded Dolan’s footprint into Florida.
Estimates Pop
After the press release analysts raised forecasts across the board. Full-year projections for Dolan in 2009 are now averaging 97 cents, up from 89 cents. This is a growth rate of 64%.
The Zacks Consensus Estimate for 2010 is now $1.12, up 9 cents. This level would be year-over-year growth of 16%.
Industry Comparison
Dolan Media is ahead of most business service companies. The company operates with a net profit margin of 10.4%, much better than the industry average of a 0.9% loss. Its ROE is 12.6% about twice the average of its peers.
The Chart
As sentiment for housing improved, shares of DM have been selling off. However, with unemployment still over 10% foreclosures are expected to continue, unfortunately.
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