Benzinga·2025-11-13 16:45Core Insights - Digi International Inc. reported better-than-expected fourth-quarter financial results, with earnings of 56 cents per share, surpassing the analyst consensus estimate of 51 cents per share, and quarterly sales of $114.338 million, exceeding the estimate of $110.248 million [1] - The company anticipates first-quarter adjusted earnings between 53 cents and 58 cents per share, compared to market estimates of 52 cents per share, and expects sales in the range of $114 million to $118 million, against estimates of $114.6 million [2] - The CEO highlighted the company's commitment to delivering reliable IoT solutions amid market challenges, with annual recurring revenue (ARR) now representing approximately 35% of total revenue [3] Financial Performance - Fourth-quarter earnings: 56 cents per share, beating estimates of 51 cents [1] - Quarterly sales: $114.338 million, exceeding estimates of $110.248 million [1] - First-quarter adjusted earnings forecast: 53 to 58 cents per share, against estimates of 52 cents [2] - First-quarter sales forecast: $114 million to $118 million, compared to estimates of $114.6 million [2] Strategic Developments - The acquisition of Jolt Software in the IoT Solutions Segment is generating favorable market acceptance [3] - The company celebrated its 40th anniversary and aims to leverage its culture of resilience and adaptability for future growth [3] Analyst Ratings - Craig-Hallum analyst upgraded Digi Intl from Hold to Buy, raising the price target from $30 to $45 [6] - Piper Sandler maintained a Neutral rating, increasing the price target from $36 to $41 [6] - Roth Capital maintained a Buy rating, raising the price target from $45 to $50 [6]