The 10-second takeaway
For the quarter ended March 31 (Q1), ZAGG beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins improved, and net margins dropped.
ZAGG booked revenue of $55.5 million. The four analysts polled by S&P Capital IQ predicted a top line of $51.1 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $27.0 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 $0.16. The two earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.16 for Q1 were 23% 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 48.5%, 210 basis points worse than the prior-year quarter. Operating margin was 18.4%, 40 basis points better than the prior-year quarter. Net margin was 9.2%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $55.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $252.8 million. The average EPS estimate is $0.87.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 249 members out of 393 rating the stock outperform, and 144 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give ZAGG a green thumbs-up, and 74 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 $17.31.
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