Skullcandy (Nasdaq: SKUL) is expected to report Q3 earnings on Nov. 1. 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 Skullcandy's revenues will increase 15.2% and EPS will increase 35.3%.
The average estimate for revenue is $69.9 million. On the bottom line, the average EPS estimate is $0.23.
Revenue details
Last quarter, Skullcandy reported revenue of $72.4 million. GAAP reported sales were 38% higher than the prior-year quarter's $52.4 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 $0.24. GAAP EPS of $0.24 for Q2 were 9.1% higher than the prior-year quarter's $0.22 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 49.2%, 190 basis points worse than the prior-year quarter. Operating margin was 16.2%, 210 basis points worse than the prior-year quarter. Net margin was 9.4%, 130 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $299.2 million. The average EPS estimate is $1.15.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 155 members out of 183 rating the stock outperform, and 28 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Skullcandy 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 Skullcandy is outperform, with an average price target of $22.10.
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