The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ZAGG crushed expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Gross margin improved, operating margin was steady, and net margin grew.
ZAGG booked revenue of $67.5 million. The five analysts polled by S&P Capital IQ predicted revenue of $55.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $29.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.27. The three earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share on the same basis. GAAP EPS of $0.32 for Q4 were 146% higher than the prior-year quarter's $0.13 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 46.5%, 80 basis points better than the prior-year quarter. Operating margin was 21.3%, about the same as the prior-year quarter. Net margin was 14.7%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $48.0 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $240.6 million. The average EPS estimate is $0.85.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 214 members out of 330 rating the stock outperform, and 116 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give ZAGG a green thumbs-up, and 60 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ZAGG is buy, with an average price target of $17.65.
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Seth Jayson had no position in any company mentioned here at the time of publication. 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. Motley Fool newsletter services have recommended writing naked calls on ZAGG . 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.