Shares of ZAGG Inc. (NASDAQ:ZAGG) soared on Wednesday after the mobile device accessory company reported first-quarter results. ZAGG handily beat analyst expectations on all fronts, registering an unexpected double-digit increase in revenue. As of 12:45 p.m. EDT, the stock was up about 26%.
ZAGG reported first-quarter revenue of $112.1 million, up 21% year over year and about $15.4 million higher than the average analyst estimate. The company attributed the sales increase to strong sales of its power management products, particularly wireless charging accessories, as well as growth in screen protection product sales.
Earnings per share came in at $0.24, up from a loss of $0.22 in the prior-year period and a whopping $0.28 above analyst expectations. Gross margin rose about 3 percentage points to 34%, while operating expenses dropped 16%.
For the full year, ZAGG expects to produce revenue between $550 million and $570 million, along with earnings per share between $1.30 and $1.50.
Shares of ZAGG have been in a downtrend since late 2017, dropping from a high of $23.70 to $11.50 prior to the first-quarter report. Wednesday's surge undoes some of the damage, but investors who bought close to the high are still deep in the red.
ZAGG CEO Chris Ahern expects the company's momentum to continue: "Looking ahead, I am confident that by staying true to ZAGG's four key corporate objectives of Product, Brand, Distribution and Operational Excellence, we can further leverage our strong leadership position in the mobile lifestyle category to drive sustained growth over the long-term."