Needham & Company Maintains a 'Buy' on LeapFrog (LF); LeapPad Drives Positive 4Q Surprise; Raising Estimates
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Price: $1.00 --0%
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on LeapFrog (NYSE: LF) price target raised $1 to $7.00.
Analyst, Sean McGowan, said, "LF released 4Q and full year results that were above our expectations and consensus estimates. 4Q sales rose 11% to $210 mm and EPS were up 29% to $0.49, both driven by LeapPad and its associated content. Full year sales were up 5% from 2010 and benefitted from a 28% increase in international sales. Management expects momentum to carry forward into 1Q and is estimating sales to increase 20-30% versus a year ago. The company’s full year 2012 guidance calls for sales growth between 6% and 8% and EPS of $0.40 - $0.45, which we believe is conservative. We are considerably more bullish, expecting sales to grow 10%, with 2012 EPS reaching $0.60, much higher than our prior estimate of $0.40. We have raised our 2013 EPS estimate from $0.50 to $0.65. We are, however, introducing a 2014 EPS estimate of $0.60, signaling that we believe growth will taper off toward the end of 2013."
For an analyst ratings summary and ratings history on LeapFrog click here. For more ratings news on LeapFrog click here.
Shares of LeapFrog closed at $6.83 yesterday.
Analyst, Sean McGowan, said, "LF released 4Q and full year results that were above our expectations and consensus estimates. 4Q sales rose 11% to $210 mm and EPS were up 29% to $0.49, both driven by LeapPad and its associated content. Full year sales were up 5% from 2010 and benefitted from a 28% increase in international sales. Management expects momentum to carry forward into 1Q and is estimating sales to increase 20-30% versus a year ago. The company’s full year 2012 guidance calls for sales growth between 6% and 8% and EPS of $0.40 - $0.45, which we believe is conservative. We are considerably more bullish, expecting sales to grow 10%, with 2012 EPS reaching $0.60, much higher than our prior estimate of $0.40. We have raised our 2013 EPS estimate from $0.50 to $0.65. We are, however, introducing a 2014 EPS estimate of $0.60, signaling that we believe growth will taper off toward the end of 2013."
For an analyst ratings summary and ratings history on LeapFrog click here. For more ratings news on LeapFrog click here.
Shares of LeapFrog closed at $6.83 yesterday.
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