ZAGG, Inc. (ZAGG) Tops Q4 EPS by 6c, Revenues Beat; Offers FY19 EPS Guidance Below Consensus, FY19 Revenue Mid-Point Below Cosnensus

ZAGG, Inc. (NASDAQ: ZAGG) reported Q4 EPS of $0.55, $0.06 better than the analyst estimate of $0.49. Revenue for the quarter came in at $166.5 million versus the consensus estimate of $163.29 million.

• Net sales of $166.5 million compared to $176.9 million
• Gross profit of 35% compared to 32%
• Net income of $14.3 million compared to $8.1 million
• Diluted earnings per share of $0.52 compared to $0.28
• Adjusted EBITDA of $28.1 million compared to $35.8 million

Chris Ahern, chief executive officer, commented, “Our fourth quarter performance was shaped by results from our core business that were generally in-line with our expectations coupled with incremental revenue, expenses and transaction costs associated with our acquisition of Gear4. While soft demand for smartphone devices has created some headwinds for our business, we were able to increase screen protection sales double digits through new product innovation, strong international growth and some domestic retailer requests for early deliveries ahead of a potential tariff increase. As expected, fourth quarter power sales were down as we lapped the launch and sell-in of our initial wireless charge pad a year ago combined with the impact on juice pack demand from the previously discussed delay in made for iPhone certification.”

“Despite certain challenges, we delivered record sales and profitability in 2018,” continued Mr. Ahern. “We also executed three strategic acquisitions that diversify our business and represent compelling growth vehicles for the future. With our expanding portfolio of authentic brands, robust product innovation teams, and network of leading retail partners, we have created a powerful platform to capture additional share of the multi-billion dollar mobile accessories market. In 2019, we plan to invest in additional programs to ensure the Company is best positioned to capitalize on the numerous opportunities we believe exist for ZAGG, including investment to drive growth from our recent acquisitions. I am confident in the course we have set for achieving our long-term goal of $1 billion in annual sales and mid-teens Adjusted EBITDA margins.”

GUIDANCE:

ZAGG, Inc. sees FY2019 EPS of $1.47-$1.60, versus the consensus of $1.65. ZAGG, Inc. sees FY2019 revenue of $610-630 million, versus the consensus of $627.01 million.

• Gross profit margin as a percentage of net sales in the mid 30's range
• Adjusted EBITDA of $82 to $86 million

For earnings history and earnings-related data on ZAGG, Inc. (ZAGG) click here.

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