The 10-second takeaway
For the quarter ended Sep. 30 (Q3), LeapFrog Enterprises beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins grew, net margins grew.
LeapFrog Enterprises notched revenue of $193.1 million. The seven analysts polled by S&P Capital IQ predicted revenue of $174.3 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $150.8 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 $0.60. The six earnings estimates compiled by S&P Capital IQ anticipated $0.42 per share. GAAP EPS of $0.62 for Q3 were 77% higher than the prior-year quarter's $0.35 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 40.0%, 100 basis points worse than the prior-year quarter. Operating margin was 19.1%, 260 basis points better than the prior-year quarter. Net margin was 21.6%, 630 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $216.8 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $534.2 million. The average EPS estimate is $0.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 267 members out of 318 rating the stock outperform, and 51 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give LeapFrog Enterprises a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LeapFrog Enterprises is outperform, with an average price target of $14.80.
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