The 10-second takeaway
For the quarter ended March 31 (Q1), LeapFrog Enterprises beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share shrank.
Gross margins shrank, operating margins grew, net margins grew.
LeapFrog Enterprises booked revenue of $82.9 million. The seven analysts polled by S&P Capital IQ anticipated sales of $79.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $72.0 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 -$0.04. The six earnings estimates compiled by S&P Capital IQ averaged -$0.07 per share. GAAP EPS were -$0.04 for Q1 versus -$0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.2%, 110 basis points worse than the prior-year quarter. Operating margin was -5.5%, 640 basis points better than the prior-year quarter. Net margin was -3.6%, 950 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $77.8 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $625.1 million. The average EPS estimate is $0.62.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 412 members out of 464 rating the stock outperform, and 52 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give LeapFrog Enterprises 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 LeapFrog Enterprises is outperform, with an average price target of $13.75.
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Seth Jayson owned shares of the following at the time of publication: LeapFrog Enterprises. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends LeapFrog Enterprises. The Motley Fool owns shares of LeapFrog Enterprises. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.