Digi Power X Inc. (DGXX) Reports Q1 Loss, Lags Revenue Estimates
Digi Power X Inc. (DGXX) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.42. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 88.10%. A quarter ago, it was expected that this company would post a loss of $0.15 per share when it actually produced a loss of $0.10, delivering a surprise of 33.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Digi Power X Inc. , which belongs to the Zacks Technology Services industry, posted revenues of $9.28 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 23.33%. This compares to year-ago revenues of $12.96 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Digi Power X Inc. Shares have not added anything since the beginning of the year versus the S&P 500's gain of 0.1%.
While Digi Power X Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Digi Power X Inc. Mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.43 on $11 million in revenues for the coming quarter and -$1.79 on $48.1 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Alithya Group (ALYAF), is yet to report results for the quarter ended March 2025.
This consulting company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Alithya Group's revenues are expected to be $85.25 million, down 4.7% from the year-ago quarter.
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This article originally published on Zacks Investment Research (zacks.com).
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Global markets were mixed as investors waited to see the outcome of trade talks between Washington and Beijing in London. The FTSE 100 was little changed at 8,834.30, while the Cac 40 in Paris lost 0.2pc to 7,792.44 and Germany's Dax edged 0.4pc lower to 24,215.67. The Dow Jones Industrial Average and S&P 500 were flat in premarket trading in New York. However, it was a different story in Asia as teams from the US and China prepared to conduct trade negotiations in London. In South Korea, the Kospi added 1.6pc to 2,855.77 and Chinese markets rose even though the government reported that exports slowed in May. Exports to the United States fell nearly 35pc in May and nearly 10pc in January-May in annual terms. China also reported that consumer prices fell 0.1pc in May from a year earlier, marking the fourth consecutive month of deflation. Hong Kong's Hang Seng picked up 1.6pc to 24,181.43, which was its highest level since March 21, while the Shanghai Composite Index climbed 0.4pc to 3,399.77. Tokyo's Nikkei 225 gained 0.9pc to 38,088.57 as the government reported that the Japanese economy contracted by 0.2pc in the January-March quarter. China wants to deepen its relationship with Britain, its vice premier has said after a meeting with Rachel Reeves. He Lifeng met with the Chancellor in London today ahead of his talks with a US trade delegation in the capital. He called for deeper financial and economic cooperation with Britain, according to China Central Television. The vice premier also urged Britain and China to maintain a stable relationship. Ms Reeves said Britain 'attaches great importance to cooperation with China and is willing to strengthen communication', according to the CCTV report. China inflation dropped last month for the fourth time in a row, official data showed, adding to concerns about the world's second largest economy. The National Bureau of Statistics (NBS) showing the consumer price index dropped 0.1pc in May. The reading, which was slightly better than expected but marks the fourth straight month of falling prices, comes as Beijing struggles to boost domestic consumption that has been sluggish since the end of the pandemic. The failure of leaders to kickstart demand threatens their official growth targets and complicates their ability to shield the economy from President Trump's tariff blitz. While deflation suggests the cost of goods is falling, it poses a threat to the broader economy as consumers tend to postpone purchases under such conditions in the hope of further reductions. The value of the dollar slipped against all major currencies ahead of the pivotal US-China trade talks. The pound was up 0.4pc against the greenback at $1.357 while the euro gained 0.3pc to $1.143. Charu Chanana, chief investment strategist at Saxo Markets, said: 'A deal to keep talking might be better than nothing, but unless we see a concrete breakthrough, the impact on sentiment is likely to remain muted.' The dollar had been lifted on Friday after better than expected US employment figures, which indicated the American economy was doing better than expected. However, the US currency remains down more than 8.6pc against major currencies so far this year. China 'holds the upper hand' in the mining and processing of rare earths, which will be a focal point in the trade talks with the US in London. The materials are crucial for not only cars but also a range of other products from robots to military equipment. The Chinese government started requiring producers to obtain a licence to export seven rare earth elements in April. Resulting shortages sent prompted fears among some car makers that they would have to halt production. President Trump, without mentioning rare earths specifically, took to social media to attack China at the end of last month, accusing it of violating its trade deal made in Geneva. The Chinese government indicated Saturday that it is addressing the concerns, which have come from European companies as well. A Commerce Ministry statement said it had granted some approvals and 'will continue to strengthen the approval of applications that comply with regulations.' The scramble to resolve the rare earth issue shows that China has a strong card to play if it wants to strike back against tariffs or other measures. Richard Hunter, an analyst at Interactive Investor, said: 'Despite the President's previous rhetoric, there seems to be some possibility that some of this aggression will be dialled back, not least of which since China has an upper hand especially with regard to its near monopoly on rare earth minerals which are so vital for components in the high-tech industry. 'China may also be keen on conciliation since there are further signs that its economy is struggling to fend off the tariff pressures so far.' The cost of government borrowing edged lower in Britain ahead of the talks between top US and Chinese trade officials in London. The yield on 10-year UK gilts – a benchmark for the cost of servicing the national debt – declined two basis points to 4.62pc on bond markets. Yields were also lower across the eurozone after the European Central Bank last week cut interest rates by a quarter of a percentage point to 2pc, as expected. Germany's 10-year bund yield was down nearly three basis points to 2.54pc. The FTSE 100 opened slightly higher as the US and China prepare to hold trade talks in London. The UK's blue-chip stock index climbed 0.1pc to 8,845.73 while the mid-cap FTSE 250 was flat at 21,159.10. Donald Trump said the talks in London 'should go very well'. The negotiations come just a few days after the US president and Xi Jinping finally held their first publicly announced telephone talks since the Republican returned to the White House. Trump said the call, which took place on Thursday, had reached a 'very positive conclusion.' Xi was quoted by state-run news agency Xinhua as saying that 'correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction'. The call came after tensions between the world's two biggest economies had soared, with Trump accusing Beijing of violating a tariff de-escalation deal reached in Geneva in mid-May. Mr Trump's press secretary, Karoline Leavitt, told Fox News on Sunday: 'We want China and the United States to continue moving forward with the agreement that was struck in Geneva.' China's export growth slowed to a three-month low in May as US tariffs hit shipments. Total exports from the world's second largest economy expanded by 4.8pc year-on-year last month, down from 8.1pc in April and below analyst expectations of 5pc, according to customs data. China's exports to the US plunged by 34.5pc in the sharpest drop since the outbreak of the Covid pandemic in February 2020. Imports dropped 3.4pc, deepening sharply from the 0.2pc decline in April, despite the trade deal agreed between Beijing and Washington in Geneva at the start of last month. Zichun Huang of Capital Economics said: 'The slowdown in export growth in May should partially reverse this month, as it reflects the drop in US orders before the trade truce, which took time to feed through to actual shipments. 'But with tariffs likely to remain elevated and Chinese manufacturers facing broader constraints on their ability to sustain rapid gains in global market share, we think export growth will slow further by year-end.' Top US and Chinese officials will sit down in London today for talks aimed at defusing the high-stakes trade dispute between the two superpowers. Their trade war has deepened in recent weeks beyond tit-for-tat tariffs to export controls over goods and components critical to global supply chains. At a still-undisclosed venue in London, the two sides will try to get back on track with a preliminary agreement struck last month in Geneva. The US delegation will be led by treasury secretary Scott Bessent, commerce secretary Howard Lutnick and US trade representative Jamieson Greer. The Chinese contingent will be helmed by vice premier He Lifeng. A UK Government spokesman said: 'The next round of trade talks between the US and China will be held in the UK on Monday. 'We are a nation that champions free trade and have always been clear that a trade war is in nobody's interests, so we welcome these talks.' Investors in Europe appear more sceptical about the prospects of the US-China trade talks kicking off in London today. The FTSE 100, France's Cac 40 and Germany's Dax are all on track to open flat when trading gets underway later. Kathleen Brooks, research director at XTB, said: 'Asian stocks are rallying at the start of the week; however, European equity futures and US futures are taking a breather and are pointing to a slightly lower open later today.' She added: 'Stocks may need a new driver to extend last week's rally after investors scaled back their expectations for Federal Reserve interest rates cuts for this year. There are less than two cuts priced in by the Fed Fund Futures market by the end of this year. 'The number of rate cuts from the Fed could be determined by the outlook for US inflation, which is released later this week. As the growth data remain unaffected by tariffs for now, inflation could hold the key for US monetary policy.' Thanks for joining me. Stock markets jumped in Asia ahead of US-China trade talks due to get under way in Britain today. Shares were up from Hong Kong to Tokyo following a call late last week between US president Donald Trump and Chinese leader Xi Jinping. Representatives from the world's two largest economies are due to meet at a still undisclosed location in London in an attempt to revive a preliminary trade agreement reached in Geneva last month. The US delegation will be led by treasury secretary Scott Bessent, commerce secretary Howard Lutnick and US trade representative Jamieson Greer. The Chinese contingent will be helmed by vice premier He Lifeng. Relations soured earlier this month after President Trump accused China of violating the terms of the deal. 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Shares rose in Asia ahead of the second round of trade talks between Washington and Beijing, due later today in London. In South Korea, the Kospi added 1.9pc to 2,865.52. Chinese markets rose even though the government reported that exports slowed in May, growing 4.8pc from a year earlier after a jump of more than 8pc in April. Exports to the United States fell nearly 10pc compared with a year earlier. China also reported that consumer prices fell 0.1pc in May from a year earlier, marking the fourth consecutive month of deflation. Hong Kong's Hang Seng picked up 1.4pc to 24,119.64 while the Shanghai Composite Index climbed 0.4pc to 3,397.13. Tokyo's Nikkei 225 gained 1.1pc to 38,137.09 as the government reported that the Japanese economy contracted by 0.2pc in the January-March quarter. Australia's market was closed for a public holiday. On Friday, stocks gained ground on Wall Street following a better-than-expected report on the US job market. The gains were broad, with every sector in the S&P 500 rising. That solidified a second consecutive winning week for the benchmark index, which has rallied back from a slump two months ago to come within striking distance of its record high. The S&P 500 rose 1pc to 6,000.36. The Dow Jones Industrial Average added 1pc to 42,762.87 while the Nasdaq gained 1.2pc, to 19,529.95. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
