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Skullcandy (SKUL)

  • Fri, Nov. 6, 11:05 AM
    • In addition to missing Q3 revenue estimates (while posting in-line EPS), Skullcandy (NASDAQ:SKUL) has guided for Q4 revenue to be up 5%-7% Y/Y (9% exc. forex) and for GAAP EPS of $0.38-$0.40, below a consensus for 14.1% growth and EPS of $0.43.
    • On the earnings call (transcript), the headphone maker blamed the outlook on "slower-than-expected growth and distributor transitions in Europe and China," along with forex. It's decreasing its business with certain Chinese distributors in order to better focus on online/digital channels, switching to a direct distribution model in Germany, and changing distributors in the Nordics.
    • Q3 details: U.S.sales rose 22% Y/Y in Q3 to $47M; international sales rose 3% (14% exc. forex) to $19.5M. Gross margin fell 430 bps Y/Y to 41% due to forex and a mix shift towards lower-margin gaming headset and wireless products. SG&A spend rose 8% to $24.5M.
    • On and over-ear headphones were 50% of Q3 revenue vs. 45% a year ago, in-ear headphones 44% vs. 49%, and speakers/accessories 7% vs. 6%. Skullcandy ended Q3 with $13.9M in cash (cash balances fell due to accelerated payment programs), and no debt.
    • SA author Equitable Research recently argued Skullcandy is a value play. Among other things, he cited improved product quality, solid Google Trends data, and the strength of the Astro Gaming headset unit. He's still bullish post-earnings. "Bottom line is the US core brand is on fire right now ... Now the key is back half of next year as the company goes direct in China and Germany and the Nordic region. Sales will rise and so will margins. These are isolated issues causing small weakness and it is temporary."
    • Q3 results, PR
    | Fri, Nov. 6, 11:05 AM | 7 Comments
  • Thu, Nov. 5, 4:12 PM
    • Skullcandy (NASDAQ:SKUL): Q3 EPS of $0.08 in-line.
    • Revenue of $67.17M (+15.7% Y/Y) misses by $1.38M.
    • Press Release
    | Thu, Nov. 5, 4:12 PM | 1 Comment
  • Wed, Nov. 4, 5:35 PM
  • Wed, Oct. 14, 7:51 AM
    • Piper Jaffray is out with its latest survey on the brand preferences of teenagers.
    • Steven Madden (NASDAQ:SHOO) grabbed more "mindshare" from upper-income females amid an overall stable performance. Piper reiterates SHOO with an Overweight rating, but slides its price target to $44 from $47.
    • Wolverine Worldwide (NYSE:WWW) is given a price target cut to $19 following the read on teenagers.
    • Nike (NYSE:NKE) dazzled again in the teen survey, with its brand at the very top in several key categories.
    • There's a "cautiously optimistic" view on Skullcandy (NASDAQ:SKUL) from PJ after taking in the results. SKUL is reiterated at Overweight and assigned a PT of $10.
    | Wed, Oct. 14, 7:51 AM | 2 Comments
  • Fri, Aug. 7, 5:53 PM
    • In addition to slightly beating Q2 EPS estimates (while slightly missing on revenue), Skullcandy (NASDAQ:SKUL) hiked its 2015 EPS guidance to $0.41-$0.43 (above a $0.39 consensus) from $0.36-$0.40.
    • Full-year revenue growth guidance of 13%-15% (in-line with a 13.8% consensus) is reiterated. Q3 guidance is for 17%-19% revenue growth and EPS of $0.07-$0.08 vs. a consensus of 13.9% growth and $0.12.
    • Boosting Q2 EPS: Gross margin was 42.8%, down 220 bps Y/Y (forex and a mix shift towards gaming products are blamed) but up 230 bps Q/Q. In addition, SG&A spend rose a moderate 4% Y/Y to $23.8M.
    • U.S. sales rose 5% Y/Y to $58M, while international sales rose 16% to $16.7M. Skullcandy's Astro gaming headset line was an area of strength.
    • Shares jumped to $7.98 in regular trading. They went into earnings just $0.27 above a 52-week low of $7.03.
    • Q2 results, PR
    | Fri, Aug. 7, 5:53 PM | Comment!
  • Thu, Aug. 6, 4:06 PM
    • Skullcandy (NASDAQ:SKUL): Q2 EPS of $0.04 beats by $0.01.
    • Revenue of $57.99M (+7.7% Y/Y) misses by $0.56M.
    • Press Release
    | Thu, Aug. 6, 4:06 PM | 3 Comments
  • Wed, Jul. 15, 2:34 PM
    • Jeff Hutchings, formerly in charge of product innovation/engineering at audio system maker Harman, has been named Skullcandy's (SKUL -2.8%) VP of engineering and category.
    • Tom Bishop, Skullcandy's VP of product and manufacturing for the last 3 years, will now lead the headphone maker's "Sourcing, Quality, Packaging and Manufacturing groups as well as select product development projects."
    • Skullcandy is lower today on light volume - 139K shares vs. a 3-month daily average of 353K.
    | Wed, Jul. 15, 2:34 PM | Comment!
  • Tue, May 12, 11:40 AM
    | Tue, May 12, 11:40 AM | 2 Comments
  • Wed, May 6, 12:45 PM
    | Wed, May 6, 12:45 PM | Comment!
  • Tue, May 5, 6:12 PM
    • Though Skullcandy (NASDAQ:SKUL) beat Q1 revenue estimates and posted in-line EPS, the company guided on its CC (webcast) for Q2 EPS of $0.01-$0.03 and $0.36-$0.40, almost entirely below consensus estimates of $0.06 and $0.40.
    • Sales guidance is healthier: The headphone maker expects 13%-15% 2015 revenue growth, above an 11.6% consensus.
    • Gross margin declines are weighing on EPS: GM fell 600 bps Y/Y in Q1 to 40.5%. Skullcandy blames "foreign currency depreciation, increased air-freight and warehousing expense to overcome west-coast port slowdowns, and product mix shift to gaming products." Forex had a 3% impact on revenue growth.
    • Cost controls boosted earnings: SG&A spend only rose 1% Y/Y to $22.4M (compares with 18% revenue growth). U.S. sales +19% to $31.1M; international sales +17% to $15.1M (+26% exc. forex).
    • Shares have fallen to $9.97 AH.
    • Q1 results, PR
    | Tue, May 5, 6:12 PM | 1 Comment
  • Tue, May 5, 5:37 PM
    | Tue, May 5, 5:37 PM | Comment!
  • Tue, May 5, 4:18 PM
    • Skullcandy (NASDAQ:SKUL): Q1 EPS of -$0.13 in-line.
    • Revenue of $46.2M (+18.2% Y/Y) beats by $3.1M.
    • Shares -0.05%.
    • Press Release
    | Tue, May 5, 4:18 PM | Comment!
  • Thu, Apr. 2, 11:36 AM
    • After meeting with CFO Jason Hodell yesterday, Jefferies has hiked its Skullcandy (NASDAQ:SKUL) target by $3 to $17, while reiterating a Buy.
    • Jefferies: "We continue to view this as the best small-cap idea in consumer discretionary today based on better management, enhanced product & improving fundamentals ... we see opportunity for sales to double from current levels in the medium term."
    • The firm thinks recent numbers reinforce its belief product improvements (both in terms of appearance and specs) are paying off. "We like the [management] remains committed to offering innovative product at disruptive price points & are optimistic for what is in store for 2015, particularly in newer product categories (wireless & gaming)."
    • It also argues: 1) Skullcandy's distribution is now "squeaky clean." 2) Sales growth and better execution can drive op. margin expansion. 3) Further share gains in the sub-$100 segment are possible, as Apple-owned Beats continues focusing on the high-end. 4) Forex and RadioShack's bankruptcy are priced in.
    • Shares are within striking distance of a 52-week high of $11.83.
    | Thu, Apr. 2, 11:36 AM | Comment!
  • Tue, Mar. 24, 3:18 PM
    • Today's notable tech gainers include chip packaging/testing firm ChipMOS (IMOS +3.7%), and headphone maker Skullcandy (SKUL +3.9%), mobile banking tech provider Mitek (MITK +6.5%), search toolbar/mobile ad platform provider Perion (PERI +8.8%), Chinese social network/game provider Renren (RENN +4.8%), peripherals giant Logitech (LOGI +4%), security IP licensing firm Finjan (FNJN +13.7%).
    • Notable decliners include e-commerce services firm ChannelAdvisor (ECOM -5.6%), program guide/content protection IP firm Rovi (ROVI -4.3%), telecom equipment vendor Calix (CALX -3.5%), and Fibre Channel/Ehternet switch vendor Brocade (BRCD -3.4%).
    • Likely helping Finjan: An H.C. Wainwright note stating the company has committed $5M to a Jerusalem Venture Partners (JVP) cybersecurity fund; Alibaba announced yesterday it's investing in JVP. Logitech announced a $100 wireless mouse today. Skullcandy is once more within striking distance of a 52-week high of $11.83.
    • Previously covered: Twitter, solar stocks, Sonus/AudioCodes/BroadSoft, Neonode, Arista, Taser, Ciena, Zagg, Gogo, Digital Ally
    | Tue, Mar. 24, 3:18 PM | 3 Comments
  • Fri, Mar. 6, 10:50 AM
    • Though it beat Q4 estimates, Skullcandy (SKUL -3.3%) guided on its CC (transcript) for Q1 revenue of $42.6M-$43.4M and EPS of -$0.12 to -$0.14, mostly below a consensus of $43.3M and -$0.08. On the other hand, full-year guidance of $272.6M-$277.5M and $0.36-$0.40 is mostly above a consensus of $259M and $0.37.
    • One-timed items, forex, inventory write-offs, and a short-term air freight issue are expected to have a $0.04 impact on Q1 (and thus full-year) EPS. Forex and RadioShack's bankruptcy will impact full-year sales - RadioShack accounted for over $14M of Skullcandy's 2014 sales.
    • U.S. sales rose 37% Y/Y in Q4 to $70.6M; international sales rose 27% to $26.3M. Gaming headset, Bluetooth headphone, and Wal-Mart demand were key growth drivers. Canada and China drove international growth. Over-ear products were 54% of revenue, in-ear products 40%, and speakers/accessories 6%.
    • In spite of the sales growth, gross margin fell 20 bps Y/Y to 43.3% thanks to higher freight charges and a mix shift towards lower-margin gaming and wireless speaker products; Skullcandy expects a "low 44%" 2015 GM (compares with 2014's 44.6%). SG&A spend was 32.1% of revenue, down from 35.9% a year earlier.
    • High expectations: Going into earnings, shares had risen 25% from the time of Skullcandy's Nov. 5 Q3 beat.
    • Q4 results, PR
    | Fri, Mar. 6, 10:50 AM | 2 Comments
  • Fri, Mar. 6, 9:15 AM
    | Fri, Mar. 6, 9:15 AM | 3 Comments
Company Description
Skullcandy Inc designs, markets and distributes audio and gaming headphones, earbuds, speakers and other accessories under the Skullcandy, Astro Gaming and 2XL brands. The Company operates through its Domestic and International segment.