Does The Street Have LeapFrog Enterprises Figured Out?

LeapFrog Enterprises (NYSE: LF  ) is expected to report Q1 earnings on May 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict LeapFrog Enterprises's revenues will grow 10.4% and EPS will remain in the red.

The average estimate for revenue is $79.5 million. On the bottom line, the average EPS estimate is -$0.07.

Revenue details
Last quarter, LeapFrog Enterprises recorded revenue of $244.7 million. GAAP reported sales were 16% higher than the prior-year quarter's $210.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.89. GAAP EPS of $0.89 for Q4 were 82% higher than the prior-year quarter's $0.49 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 44.8%, 10 basis points better than the prior-year quarter. Operating margin was 17.7%, 150 basis points better than the prior-year quarter. Net margin was 25.4%, 980 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $623.9 million. The average EPS estimate is $0.66.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 411 members out of 463 rating the stock outperform, and 52 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give LeapFrog Enterprises a green thumbs-up, and 15 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 $14.75.

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Seth Jayson owned shares of the following at the time of publication: LeapFrog Enterprises. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends LeapFrog Enterprises. The Motley Fool owns shares of LeapFrog Enterprises. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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