The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ZAGG beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
ZAGG booked revenue of $87.5 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $83.7 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $67.6 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 $0.34. The six earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. Non-GAAP EPS of $0.34 for Q4 were 26% higher than the prior-year quarter's $0.27 per share. GAAP EPS of $0.01 for Q4 were 97% lower than the prior-year quarter's $0.32 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 44.1%, 900 basis points worse than the prior-year quarter. Operating margin was 19.2%, 650 basis points worse than the prior-year quarter. Net margin was 0.2%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.2 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $308.1 million. The average EPS estimate is $1.06.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 270 members out of 360 rating the stock outperform, and 90 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give ZAGG a green thumbs-up, and 45 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ZAGG is outperform, with an average price target of $13.68.
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