Skullcandy Earnings: Here’s Why the Stock is Falling Now

Skullcandy Inc (NASDAQ:SKUL) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.68%.

Skullcandy Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.0 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Decreased 29.87% to $50.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Skullcandy Inc reported adjusted EPS loss of $0 per share. By that measure, the company beat the mean analyst estimate of $-0.03. It missed the average revenue estimate of $55.79 million.

Quoting Management: “The second quarter was about taking the initial steps toward getting our house in order to drive positive, long-term transformation at Skullcandy,” stated Hoby Darling, President and Chief Executive Officer. “We had to reduce expenses and recalibrate our operating platform to better align with our current sales trajectory. Our decisive actions during the quarter allowed us to break even on the bottom line despite ongoing sales headwinds. With our product, marketing and sales teams now consolidated in Park City we are in a much better position to build momentum and establish Skullcandy as the world’s leading lifestyle and performance audio company driven by the creativity and irreverence of youth culture. I am excited about the future and I am confident that we are assembling the right team to successfully execute our strategic plan and deliver significant shareholder value.”

Key Stats (on next page)…

Revenue increased 37.11% from $37.05 million in the previous quarter. EPS increased to $0.0 in the quarter versus EPS of $-0.23 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 $0.06 to a profit $0.05. For the current year, the average estimate is a profit of $0.13, which is the same with that ninety days ago.

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

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