Leapfrog Earnings Hit the Mark
Analysts are bullish on electronic educational toys maker Leapfrog Enterprises, Inc (NYSE:LF) after it reported excellent results for the first quarter.
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Revenues were up 81 percent to $72 million, compared to the year-ago period, while analysts expected $51 million. Leapfrog reported a loss of 14 cents a share against street expectations of 26 cents a share.
“We delivered a terrific performance in the first quarter with strong sales growth, margin expansion, and a significant improvement to the bottom line,” CEO John Barbour said in a statement.
“Our exceptional growth was a result of strong business execution, far lower retail inventory levels at the start of the year, and Easter occurring two weeks earlier than last year, which drove sales in the first quarter compared to the second quarter last year. In addition, sales of LeapPad, its content, and accessories significantly exceeded our expectations.”
The company’s second-quarter forecast is in sync with analysts’ expectations at 18-20 cents a share. However, sales are expected to grow only 17-22 percent from last year, below analysts’ expectations of 21.4 percent.
For the year as a whole, sales are expected to rise 10-13 percent and earnings are expected at 52-57 cents a share; analysts expected 10.3 percent sales growth and earnings at 50 cents a share.
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