) has either outperformed or matched quarterly earnings estimates
for years now. More recently, this mobile device accessories and
technology company has surpassed the Zacks Consensus Estimate in 3
of the last 4 quarters. Moreover, with a forward price-to-earnings
(P/E) multiple of just 7.9 and a price-to-book (P/B) ratio of 1.9,
this Zacks Rank #1 (Strong Buy) stock looks like a solid value
On Nov 1, ZAGG reported third quarter earnings per share of 23
cents, topping the Zacks Consensus Estimate by nearly 44%. Sales
jumped 30% to $59.8 million, with 84% coming from indirect
channels, 10% from ZAGG.com and iFrogz.com, and 6% from the
company's mall cart and kiosk program.
Gross margin expanded 210 basis points to 44.5%, while gross profit
grew 37% year over year to $26.6 million. Consequently, operating
profit rose 54% to $7.1 million, compared with $4.6 million in the
The company raised its sales guidance for 2012 to between $259
million - $262 million, up from its previous forecast of $256
million. Adjusted EBITDA is now expected between $59.0 million and
$62.0 million, compared with the prior guidance of $56 million to
Earnings Estimate Revisions
Over the last 60 days, the Zacks Consensus Estimate for 2012
remained unchanged at 74 cents. However the Zacks Consensus
Estimate for 2013 advanced 1.04% to 97 cents over that timeframe,
suggesting a year-over-year improvement of nearly 32%.
The forward prospects of ZAGG remain promising, as is evident from
a P/E multiple of 7.6, a P/S ratio of 1.0 and a P/B ratio of 1.9.
(A P/E below 15.0, a P/S ratio lesser than 1.0 and a P/B ratio
under 3.0 generally suggests at a value stock.) Moreover, the
company has a 1-year ROE of 23.4%, substantially higher than the
peer group average of 8.5%. In addition to being a value stock,
ZAGG remains attractive given its earnings growth prospects.
In 2005, ZAGG Inc. established its business and is involved in
designing, manufacturing and distributing products like protective
coverings, audio accessories and power solutions for consumer
electronics and hand-held devices worldwide. Based in Salt Lake
City, Utah, the company has operations in the United States and
Europe. The company's brand portfolio includes ZAGG,
invisibleSHIELD and iFrogz. ZAGG has a market cap of $235.2
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