LeapFrog Enterprises Earnings: Here’s Why Shares are Up Now

LeapFrog Enterprises Inc. (NYSE:LF) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.85%.

LeapFrog Enterprises Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.05 in the quarter versus EPS of $-0.12 in the year-earlier quarter.

Revenue: Rose 16.12% to $83 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LeapFrog Enterprises Inc. reported adjusted EPS loss of $0.05 per share. By that measure, the company beat the mean analyst estimate of $-0.08. It beat the average revenue estimate of $77.19 million.

Quoting Management: “In a challenging economic environment, we delivered strong net sales growth and improved our bottom line in the quarter while making strategic, long-term investments in the business,” said John Barbour, Chief Executive Officer. “Our learning tablets, learn-to-read systems, and learning toys businesses each experienced double-digit net sales growth. Our performance speaks to the exceptional quality and rich educational content of our learning solutions and parents’ priority to invest in their children’s education.”

Key Stats (on next page)…

Revenue increased 0.07% from $82.94 million in the previous quarter. EPS increased to $-0.05 in the quarter versus EPS of $-0.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.35 to a profit $0.34. For the current year, the average estimate has moved down from a profit of $0.65 to a profit of $0.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)