LeapFrog Enterprises Earnings: Here’s Why the Stock is Down 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 2.22%.

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LeapFrog Enterprises Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.04 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Rose 15.12% to $82.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LeapFrog Enterprises Inc. reported adjusted EPS loss of $0.04 per share. By that measure, the company beat the mean analyst estimate of $-0.07. It beat the average revenue estimate of $79.47 million.

Quoting Management: “We delivered solid sales and cash flow growth in the quarter while making strategic, long-term investments in the business,” said John Barbour, Chief Executive Officer. “Content sales for our installed base of millions of multimedia learning platforms were the biggest driver of our sales performance. Sales were strong across content, platforms, accessories and toys, with each exhibiting double-digit sales growth rates, and also benefitted from an earlier Easter than in 2012.”

Key Stats (on next page)…

Revenue decreased 66.13% from $244.73 million in the previous quarter. EPS decreased to $-0.04 in the quarter versus EPS of $0.60 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.12 to a loss $0.08. For the current year, the average estimate has moved down from a profit of $0.86 to a profit of $0.65 over the last ninety days.

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