Growth & Income: DDi Corporation (DDIC)

DDi Corporation (DDIC) is expected to grow earnings by over 800% in 2010 as demand remains strong from electronics manufacturers.

DDi manufactures printed circuit boards that help leading electronics OEMs and contract manufacturers from around the world develop new products.

DDi Corp. Surprised by 52.6% in the Second Quarter

On July 29, DDi Corporation reported second quarter results that surprised on the Zacks Consensus for the second quarter in a row. Earnings per share were 29 cents compared to the consensus of just 19 cents.

Sales rose 84% to $68.4 million compared to the second quarter of 2009, at the height of the recession, and were also up 6% from the first quarter of the year.

Outlook Bullish for 2010

The company is optimistic about 2010 as bookings for its new NextGen-SMV technology surpassed $1 million and it continues to see solid demand for its services.

It raised its sales growth rate to the range of 20% to 25% over 2009 pro-forma net sales.

Zacks Consensus Estimates Rise

Analysts are equally as bullish about the rest of 2010. The Zacks Consensus Estimate jumped to 90 cents from 84 cents in the last month.

The company made just 9 cents in all of 2009.

2011 also looks solid with earnings growth expected to be another 33.8%.

First Time Dividend

On May 13, the company announced it would be paying a dividend for the first time. The 6 cents a share payout was paid in July.

This is a yield of 2.90% which is not only a solid dividend in any sector but is much higher than the industry, which averages no payout at all.

DDi Corp. also has an attractive return on equity (ROE) of 14.6%, whereas the industry stands at just 8.6%.

DDi Corporation is a Zacks #1 Rank (strong buy) stock.

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