ZAGG
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ZAGG met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins expanded, operating margins dropped, net margins increased.
Revenue details
ZAGG reported revenue of $59.8 million. The six analysts polled by S&P Capital IQ predicted revenue of $60.7 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $45.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.11. The six earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS of $0.11 for Q3 were 57% higher than the prior-year quarter's $0.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 44.5%, 210 basis points better than the prior-year quarter. Operating margin was 11.9%, 70 basis points worse than the prior-year quarter. Net margin was 5.7%, 80 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $80.9 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $258.8 million. The average EPS estimate is $0.77.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 258 members out of 365 rating the stock outperform, and 107 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give ZAGG a green thumbs-up, and 55 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ZAGG is outperform, with an average price target of $14.54.
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