The 10-second takeaway
For the quarter ended Dec. 31 (Q4), LeapFrog Enterprises beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Gross margins were steady, operating margins increased, net margins grew.
LeapFrog Enterprises logged revenue of $244.7 million. The seven analysts polled by S&P Capital IQ predicted revenue of $225.0 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $210.2 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 $0.89. The six earnings estimates compiled by S&P Capital IQ forecast $0.49 per share. GAAP EPS of $0.89 for Q4 were 82% higher than the prior-year quarter's $0.49 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 44.7%, about the same as the prior-year quarter. Operating margin was 17.7%, 150 basis points better than the prior-year quarter. Net margin was 25.4%, 980 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $75.5 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $580.2 million. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 355 members out of 405 rating the stock outperform, and 50 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give LeapFrog Enterprises a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LeapFrog Enterprises is outperform, with an average price target of $14.75.
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