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ZAGG Inc. (NASDAQ:ZAGG) has either outperformed or matched quarterly earnings estimates for years now. More recently, this mobile device accessories and technology company has surpassed the Zacks Consensus Estimate in three of the last four quarters. Moreover, with a forward price-to-earnings (P/E) multiple of just 7.9 and a price-to-book (P/B) ratio of 1.9, this Zacks Rank No. 1 (Strong Buy) stock looks like a solid value pick.

Impressive Q3

On Nov. 1, ZAGG reported third-quarter earnings per share of 23 cents, topping the Zacks Consensus Estimate by nearly 44%. Sales jumped 30% to $59.8 million, with 84% coming from indirect channels, 10% from ZAGG.com and iFrogz.com, and 6% from the company's mall cart and kiosk program.

Gross margin expanded 210 basis points to 44.5%, while gross profit grew 37% year-over-year to $26.6 million. Consequently, operating profit rose 54% to $7.1 million, compared with $4.6 million in the year-ago quarter.

The company raised its sales guidance for 2012 to between $259 million - $262 million, up from its previous forecast of $256 million. Adjusted EBITDA is now expected between $59.0 million and $62.0 million, compared with the prior guidance of $56 million to $61 million.

Earnings Estimate Revisions

Over the last 60 days, the Zacks Consensus Estimate for 2012 remained unchanged at 74 cents. However, the Zacks Consensus Estimate for 2013 advanced 1.04% to 97 cents over that time frame, suggesting a year-over-year improvement of nearly 32%.

Value Fundamentals

The forward prospects of ZAGG remain promising, as is evident from a P/E multiple of 7.6, a P/S ratio of 1.0 and a P/B ratio of 1.9. (A P/E below 15.0, a P/S ratio lesser than 1.0 and a P/B ratio under 3.0 generally suggests at a value stock.) Moreover, the company has a one-year ROE of 23.4%, substantially higher than the peer group average of 8.5%. In addition to being a value stock, ZAGG remains attractive given its earnings growth prospects.

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In 2005, ZAGG Inc. established its business and is involved in designing, manufacturing, and distributing products like protective coverings, audio accessories, and power solutions for consumer electronics and hand-held devices worldwide. Based in Salt Lake City, Utah, the company has operations in the United States and Europe. The company's brand portfolio includes ZAGG, invisibleSHIELD, and iFrogz. ZAGG has a market cap of $235.2 million.

ZAGG: Free Stock Analysis Report (email registration required).

Source: Zagg Inc. - Strong Value Pick