ZAGG, Inc. (ZAGG) Investors Hit Exits as FY12 Outlook Boost Misses Views
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ZAGG (Nasdaq: ZAGG) shares are getting hit pretty hard Friday following release of its second-quarter 2012 report late Thursday.
Overall, the report looked solid: EPS at 18 cents was in-line with views while sales came in at a better-than-expected $61.6 million. Margins expanded about 240 basis points to 53.9 percent. Net income popped 13.7 percent higher sequentially and 54 percent from last year. Adjusted EBITDA was raised $1 million at both ends, to a range of $56 million to $60 million.
ZAGG even raised its sales outlook for 2012, from $250 million prior up to a new level of $256 million. But, the Street was looking for sales of $261.3 million.
The Street expects more because ZAGG is said to benefit as Apple products like its iPhone and iPad increase sales.
Though its a strong move today, ZAGG usually seems to sell off after earnings. For investors willing to take a risk on the mobile accessory market and have plenty of Pepto at hand, ZAGG's bolstering margins and positive growth outlook could be a catalyst for things to come over the next few months.
Otherwise, leave this one by the roadside. Shares are down well over 16 percent Friday.
Overall, the report looked solid: EPS at 18 cents was in-line with views while sales came in at a better-than-expected $61.6 million. Margins expanded about 240 basis points to 53.9 percent. Net income popped 13.7 percent higher sequentially and 54 percent from last year. Adjusted EBITDA was raised $1 million at both ends, to a range of $56 million to $60 million.
ZAGG even raised its sales outlook for 2012, from $250 million prior up to a new level of $256 million. But, the Street was looking for sales of $261.3 million.
The Street expects more because ZAGG is said to benefit as Apple products like its iPhone and iPad increase sales.
Though its a strong move today, ZAGG usually seems to sell off after earnings. For investors willing to take a risk on the mobile accessory market and have plenty of Pepto at hand, ZAGG's bolstering margins and positive growth outlook could be a catalyst for things to come over the next few months.
Otherwise, leave this one by the roadside. Shares are down well over 16 percent Friday.
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