The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Skullcandy beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins expanded.
Skullcandy recorded revenue of $71.0 million. The nine analysts polled by S&P Capital IQ predicted sales of $69.9 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $60.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.23. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. GAAP EPS of $0.23 for Q3 were 475% higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.0%, 30 basis points worse than the prior-year quarter. Operating margin was 15.0%, 60 basis points better than the prior-year quarter. Net margin was 9.1%, 750 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $103.1 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $298.9 million. The average EPS estimate is $1.13.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 157 members out of 185 rating the stock outperform, and 28 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Skullcandy a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Skullcandy is outperform, with an average price target of $20.80.
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