ZAGG Inc Earnings: Here’s Why Investors are Not Excited Now

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

ZAGG Incorporated (NASDAQ:ZAGG) delivered a profit and missed Wall Street’s expectations, AND 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 26.16%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

ZAGG Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.25% to $0.11 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Decreased 7.17% to $51.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ZAGG Incorporated reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.21. It missed the average revenue estimate of $66.57 million.

Quoting Management: “This was a uniquely challenging quarter in which our results were impacted by a number of circumstances, some that were macro in nature and others that were company specific. Though the company experienced reduced sales, ZAGG also realized benefits to its financial activities through the pay down of our line of credit and the repurchase of company stock,” said Randy Hales, president and CEO. “We are working internally to make necessary changes to build a superior company and increase shareholder value over the long-term. While the consequences of these changes in the near-term are challenging, I remain confident that we are building a stronger foundation for growth. Our creative product solutions, go-to-market strategies and diversification of our overall portfolio are what set ZAGG apart from the competition and our retailers have recognized that. In fact, next week a large retail customer will highlight us as one of its top suppliers in 2012 and the first ever in the mobile accessories industry.”

Key Stats (on next page)…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business