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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
  • 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!
  • 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!
  • 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
  • Thu, Mar. 5, 1:22 PM
    • Headphone/portable speaker maker Skullcandy (SKUL +7.1%) and Chinese social networking, entertainment, and gaming platform YY (YY +4.6%) are both posting big gains ahead of their Q4 reports, which arrive after the bell.
    • Skullcandy is up 25% since posting a Q3 beat on Nov. 5. YY, by contrast, is down 32% since beating Q3 estimates on Nov. 11.
    | Thu, Mar. 5, 1:22 PM | Comment!
  • Tue, Jan. 13, 1:24 PM
    • Skullcandy (NASDAQ:SKUL) CEO Hoby Darling and CFO Jason Hodell are presenting at the ICR XChange investor conference. In tandem with the presentation, the company has released slides (.pdf) providing November sales data and initial 2015 guidance.
    • November retail revenue rose 21% Y/Y in a "heavy promotional environment." For the three months ending November, Skullcandy was the top U.S. brand in terms of units moved, and had the #1 and #3 positions in the U.S. earbud and $20-$100 headphone markets (per NPD). For reference, total Q3 revenue growth was 16%, and the Q4 revenue growth consensus is at 13.7%.
    • Skullcandy expects "low teens" 2015 revenue growth (similar to 2014), above a consensus for 9.8% growth. International sales are expected to lead the way. Gross margin (affected by Skullcandy's entrance into new product categories) is forecast to be in the "low 44%" area, and SG&A is expected to equal 38% of revenue.
    • Jefferies upgraded last week.
    | Tue, Jan. 13, 1:24 PM | 3 Comments
  • Mon, Jan. 5, 10:16 AM
    • Skullcandy (NASDAQ:SKUL) is kicking off CES week with a bang thanks to a Jefferies upgrade to Buy. The firm's target has been hiked by $2 to $11.
    • The headphone maker is at its highest levels since March. Shares sport a 0.9x 2015E EV/sales ratio.
    | Mon, Jan. 5, 10:16 AM | Comment!
  • Nov. 20, 2014, 10:58 AM
    • Skullcandy (NASDAQ:SKUL) CEO Hoby Darling discloses he bought 3K shares on Tuesday at $8.13. CFO Jason Hodell discloses he bought 4.3K shares on Tuesday at $8.12.
    • The purchases come in the wake of Skullcandy's Nov. 5 Q3 beat. Darling and Hodell also bought shares in August.
    | Nov. 20, 2014, 10:58 AM | 2 Comments
  • Sep. 17, 2014, 9:53 AM
    • Piper Jaffray's Jonathan Berg assumes coverage with an Overweight rating and $9.50 price target. The firm had been bearish on the stock for most of 2013 and the first part of 2014, before pulling its Underweight rating in June.
    • Skullcandy (SKUL +4.2%) was the recipient of a couple of other sell-side upgrades in August.
    | Sep. 17, 2014, 9:53 AM | Comment!
  • Aug. 20, 2014, 9:54 AM
    • D.A. Davidson has upgraded Skullcandy (SKUL +3.9%) to Buy, and raised its target by $2 to $10.
    • The firm thinks Skullcandy's U.S. ops are stabilizing, and is pleased with a mix shift towards higher-margin in-ear headphones.
    • The move comes a week after Jefferies upgraded Skullcandy to Hold, declaring it's seeing "signs of sustained fundamental improvement." Shares are at their highest levels since April.
    | Aug. 20, 2014, 9:54 AM | 1 Comment
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.