It was another strong quarter for gadgetry accessories specialist ZAGG
Net sales soared 106% to $55.5 million. Last summer's acquisition of iFrogz is naturally padding ZAGG's top-line results, but it's impressive growth all the same. Gross margins contracted and earnings climbed 55% to $5.1 million, or $0.16 a share.
Analysts were only expecting a profit of $0.14 a share on $52 million in revenue. ZAGG has now produced back-to-back blowout quarters after a couple of mortal showings last year.
ZAGG continues to make inroads. Wal-Mart
It was easy to expect a strong quarter. We already knew that Apple
ZAGG may be in a competitive market, but the company's deep retail penetration in consumer electronics stores, warehouse clubs, and even wireless carrier shops gives it an edge in pushing its premium-priced offerings.
There's never a shortage of critics when it comes to ZAGG. The stock took a nearly 8% hit yesterday -- ahead of its quarterly report -- after a Seeking Alpha post called into question the company's reported revenue.
It was a laughably flimsy skewering, relying largely on interviewing five Best Buy
The skepticism will continue. Nearly a third of ZAGG's shares are sold short. Too many people feel that ZAGG's accessories are commodities and shoppers gravitating online will make it more tempting to settle for dirt cheap knockoffs. Others don't trust management.
It's OK. A little skepticism is healthy -- as long as it continues to deliver bear-silencing results.
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Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.