The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Skullcandy beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share stayed the same. GAAP earnings per share shrank.
Margins dropped across the board.
Skullcandy reported revenue of $101.0 million. The nine analysts polled by S&P Capital IQ predicted net sales of $98.6 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $83.4 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 $0.47. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.48 per share. Non-GAAP EPS of $0.47 were the same as the prior-year quarter. GAAP EPS of $0.41 for Q4 were 8.9% lower than the prior-year quarter's $0.45 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%, 560 basis points worse than the prior-year quarter. Operating margin was 17.5%, 980 basis points worse than the prior-year quarter. Net margin was 11.4%, 340 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $59.8 million. On the bottom line, the average EPS estimate is -$0.25.
Next year's average estimate for revenue is $333.7 million. The average EPS estimate is $0.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 191 members out of 219 rating the stock outperform, and 28 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Skullcandy a green thumbs-up, and nine 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 $15.78.
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