Summer Infant, Inc. (NASDAQ:SUMR) delivered a profit and met 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.
Summer Infant, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 71.43% to $0.02 in the quarter versus EPS of $0.07 in the year-earlier quarter.
Revenue: Decreased 6.19% to $59.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Summer Infant, Inc. reported adjusted EPS income of $0.02 per share. By that measure, the company met the mean analyst estimate of $0.02. It missed the average revenue estimate of $60.48 million.
Quoting Management: “We made good progress during the first quarter toward improving our operations and bottom-line performance despite the soft retail market,” said Jason Macari, President and Chief Executive Officer. “Revenue and gross margin increased from the fourth quarter, and we lowered both selling and G&A expenses on a sequential and year-over-year basis. As expected, revenues were down 6% year over year as we discontinued several non-profitable or low-margin products and began to exit licensing agreements. While most product categories were slightly down to flat during the quarter, higher sales from the Safety, Play and Nursery categories partially offset softness in other categories.”
Key Stats (on next page)…