Skullcandy Earnings: Here’s Why Investors Don’t Like These Results
Skullcandy Inc (NASDAQ:SKUL) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.19%.
Skullcandy Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.23 in the quarter versus EPS of $0.05 in the year-earlier quarter.
Revenue: Decreased 30.37% to $37.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Skullcandy Inc reported adjusted EPS loss of $0.23 per share. By that measure, the company beat the mean analyst estimate of $-0.27. It missed the average revenue estimate of $37.27 million.
Quoting Management: “While our first quarter results were in line with expectations, there is still much work to be done in order to improve on our recent performance,” stated Hoby Darling, President and CEO. “Skullcandy rapidly expanded its share of the headphone category the past few years driven in large part by a disruptive market position and strong brand equity within action sports. We now need to broaden our growth pillars in order to evolve as an audio leader and expand the category. Our go-forward plans will focus on developing more technology driven, consumer innovative products, creating deeper connections with consumers through authentic and clear brand messages, and winning at the point of sale. Through diligent focus on these key areas, combined with establishing a balanced distribution platform, we believe we can achieve our near-term operating goals while setting the Company up to deliver consistent sales and earnings growth over the long-term.”
Key Stats (on next page)…