The 10-second takeaway
For the quarter ended March 31 (Q1), ZAGG whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share dropped significantly.
Margins contracted across the board.
ZAGG booked revenue of $51.5 million. The six analysts polled by S&P Capital IQ expected revenue of $66.5 million on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $55.5 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 $0.03. The six earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.03 for Q1 were 81% lower than the prior-year quarter's $0.16 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 36.9%, much worse than the prior-year quarter. Operating margin was 3.9%, much worse than the prior-year quarter. Net margin was 1.7%, 750 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $61.1 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $278.0 million. The average EPS estimate is $1.21.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 278 members out of 365 rating the stock outperform, and 87 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give ZAGG a green thumbs-up, and 39 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 $12.89.
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