Summer Infant, Inc. (NASDAQ:SUMR) 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.
Summer Infant, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.01 in the quarter versus EPS of $-0.02 in the year-earlier quarter.
Revenue: Decreased 12.85% to $53.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Summer Infant, Inc. reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $58.88 million.
Quoting Management: “Our strategy to improve operations and enhance profitability is on track and is reflected in our higher adjusted EBITDA year over year for the quarter on lower revenue,” said Jason Macari, President and Chief Executive Officer. “Revenues were down year over year primarily due to lower sales to a large customer. In addition, our focus on improving profitability by rationalizing licensed and certain unprofitable or low-margin products contributed to the revenue decrease. Most product category sales were flat to slightly down during the quarter, with the exception of our core Safety category, which increased from the second quarter of 2012.”
Key Stats (on next page)…