Skullcandy
 (SKUL)

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  • Tue, Jan. 12, 12:41 PM
    | Tue, Jan. 12, 12:41 PM
  • Mon, Jan. 11, 5:38 PM
    | Mon, Jan. 11, 5:38 PM
  • Mon, Jan. 11, 5:05 PM
    • After coming off a halt, Skullcandy (NASDAQ:SKUL) has tumbled to $3.75 after hours in response to its Q4 warning.
    • Shares have fallen to the lowest levels seen since the headphone maker went public in 2011.
    | Mon, Jan. 11, 5:05 PM | 2 Comments
  • Mon, Jan. 11, 4:46 PM
    • After backing out a $1.6M pre-tax allowance for a bad debt charge related to "further challenges with a China distributor," Skullcandy (NASDAQ:SKUL) now expects Q4 GAAP EPS of $0.25-$0.27, below prior guidance of $0.38-$0.40 and a $0.37 consensus.
    • The company also announces it has bought out the minority interest in its Mexican JV; the purchase price is undisclosed. Skullcandy: "The Skullcandy brand has resonated extremely well with consumers in [Mexico] since launching a few years ago. By working directly with our retail partners combined with additional demand creation investments, we believe we can accelerate sales growth and increase our market share at a faster pace."
    • CEO Hoby Darling insists Skullcandy saw "solid consumer demand" in Q4 for both its core brand and its Astro gaming headset brand. The quarter's shortfall is blamed on a weak U.S. headphone market, "aggressive promotional activity" from rivals, with the gross margin impact of a product mix shift, a decision to minimize sales to discount channels, and ongoing "clean-up work with our largest China distributor."
    • Shares are halted. The guidance cut comes ahead of a Wednesday ICR conference presentation (will take place at 10:30AM ET).
    • Two months ago: Skullcandy plunges on Q3 sales miss, soft Q4 guidance
    | Mon, Jan. 11, 4:46 PM
  • Dec. 30, 2015, 9:47 AM
    • Believing forex swings and strong retail headphone promo activity is "overshadowing very strong constant currency sales growth and market share gains," Oppenheimer's Sean McGowan has launched coverage on Skullcandy (NASDAQ:SKUL) with an Outperform rating and $8 target.
    • McGowan cautions recent headwinds could weigh on shares into 2016, but adds Skullcandy's results should look better a year from now. "We expect the stock to trade up to at least $8 12-18 months from now, and believe it will Outperform the broader markets."
    • The coverage comes less than two months after Skullcandy plunged due to a Q3 sales miss and light Q4 guidance. Shares -46% YTD, and trading for just 10.6x a 2016 EPS consensus of $0.47.
    | Dec. 30, 2015, 9:47 AM
  • Nov. 6, 2015, 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
    | Nov. 6, 2015, 11:05 AM | 7 Comments
  • Aug. 7, 2015, 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
    | Aug. 7, 2015, 5:53 PM
  • May 12, 2015, 11:40 AM
    | May 12, 2015, 11:40 AM | 1 Comment
  • May 6, 2015, 12:45 PM
    | May 6, 2015, 12:45 PM
  • May 5, 2015, 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
    | May 5, 2015, 6:12 PM | 1 Comment
  • May 5, 2015, 5:37 PM
    | May 5, 2015, 5:37 PM
  • Apr. 2, 2015, 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.
    | Apr. 2, 2015, 11:36 AM
  • Mar. 24, 2015, 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
    | Mar. 24, 2015, 3:18 PM | 3 Comments
  • Mar. 6, 2015, 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
    | Mar. 6, 2015, 10:50 AM | 2 Comments
  • Mar. 6, 2015, 9:15 AM
    | Mar. 6, 2015, 9:15 AM | 3 Comments
  • Mar. 5, 2015, 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.
    | Mar. 5, 2015, 1:22 PM
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.