After good Q4 results from Garmin (GRMN) and fiscal Q3 2012 from Voxx International (VOXX), sector peer Cobra Electronics (COBR) traded up to $5.89 preemptive of high expectations in Q4 2011. Though results for the fiscal year showed 204% growth in operating profit, the fact that Cobra Electronics did not match the results of two competitors that overlap in travel related industries had a devastating effect on its stock price.
This time around, Cobra was first to report earnings and showed an impressive 18 cent EPS improvement, bringing Q1 EPS into the black for the first time in four years. First quarter improvement may be due in large to the fact that Cobra is getting pretty successful at gearing to youth. Cobra's iRadar has made good use of the cloud, smartphone technology, and radar detection allowing the sharing of information which might help an individual avoid a ticket. Cobra's accepted vision of radar detection has now landed the iRadar in every Apple (AAPL) store in America. For a company that was synonymous with advanced technology in the 1980s, it seems that Cobra is taking marked steps to be a pioneer in the field once again.
While Cobra can now share in Apple's success, Google (GOOG) is not being left out either. The iRadar also comes in an Android version. Cobra also has a new product, the JoyRide, which takes into account Google's unique android features and the move towards a hands free automotive experience. The way Cobra has taken advantage of Android's system has garnered it industry notice. Recently, Google picked Cobra as a partner in the 2012 Consumer Electronics Show booth in showing off their phone capabilities.
While many have disappointed by Q4 2011 results, Q1 2012 shows that Cobra is still on the right track. Look for the company to continue an up-tick for the rest of 2012 and beyond.
|Cobra Electronics EPS ANALYSIS|
Disclosure: I am long COBR.