More on Leapfrog earnings


LeapFrog (LF) Q2 beats on lower than anticipated per share losses and better total sales.

Sales growth was largely driven by its LeapPad learning tablet and LeapReader reading-and-writing lines, which benefited from new products being shipped to retailers for summer 2013 launches.

Net sales increased 16% Y/Y; U.S. segment +19%, international +10%.

Loss from operations improved by 34%.

For Q3, sales are seen increasing in the mid-to-high single-digit percentage growth rate compared to Q3 last year. EPS is seen at $0.32. The Street is at $0.34 per share.

Shares +1.9% AH.

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Comments (3)
  • Philip Marlowe
    , contributor
    Comments (1601) | Send Message
     
    It should be noted that all LF guidance should be taken with a grain of salt. They have a regular history of severely understating their guidance.

     

    For example, Leapfrog's guidance for this present quarter was a loss of 10-8 cents per share and a mid to high single digit growth rate of revenues. Instead revenues grew by 16% (!!) and the loss was only 4 cents.

     

    This is not an isolated occurrence. This happens quarter after quarter after quarter.
    1 Aug 2013, 05:30 PM Reply Like
  • Value Pursuit
    , contributor
    Comments (52) | Send Message
     
    I think that it would reflect poorly on the management if they set their revenue guidance for double digit growth and then only hit single digits. LF is doing incredibly well in sales, products are constantly sold out. If the management starts to reflect this optimism in their future guidance, I think that would be a time to reassess ownership due to over confidence of management and unrealistic expectations of future results. I personally appreciate the realistic revenue-growth guidance approach. LF might not have the most popular selling products forever, they just are have them right now. That's why I am long.
    1 Aug 2013, 05:43 PM Reply Like
  • yongshuai
    , contributor
    Comments (62) | Send Message
     
    I am with Daniel on this, I rather have a conservative and humble(for lack of better word) management team like LF have. They know what they are doing and have a great line of products with world wide acknowledged brand. Even the business is mainly based on the current consumer economy (which is a bit tough), I still believe the company can reach new high in the near future, possibly Q4 2012. LONG LF
    1 Aug 2013, 06:30 PM Reply Like
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