Skullcandy Boosts FY11 View; Swings To Profit In Q3
(RTTNews) Headphones maker Skullcandy Inc. (SKUL) lifted its fiscal 2011 financial forecast, above consensus, and reported a third-quarter profit, boosted by double-digit increases in both units and average selling prices and strong growth across its domestic, international and online sales channels.
The company raised its 2011 sales outlook to about $231.0 million and earnings to about $0.78 per share, from the previously communicated guidance range of $208 million - $218 million sales, and $0.65 - $0.70 earnings per share.
Excluding one-time expenses, the company currently projects full year adjusted earnings to be about $0.93 per share, an increase from the prior forecast range of $0.87 - $0.92 per share.
Analysts are looking for earnings of $0.90 per share on revenues of $217.33 million for fiscal 2011.
The company swung to a third-quarter profit of $959 thousand or $0.04 per share from a loss of $1.24 million or $0.09 per share incurred a year ago.
Adjusted net income for the latest third quarter was $4.55 million or $0.17 per share, compared to $2.58 million or $0.13 per share in the prior year quarter.
On average, 8 analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share. Analysts’ estimates typically exclude special items.
Quarterly net sales amounted to $60.6 million, 57.5% higher than the previous year's $38.5 million. Seven Wall Street analysts had a consensus revenue estimate of $50.62 million for the quarter.
Domestic net sales increased 37.2% to $39.8 million, international net sales grew 75.9% to $14.6 million, and online net sales rose 416.7% to $6.2 million during the third quarter of 2011.
During the recent third quarter, the company began separating online sales from domestic net sales for reporting purposes. On a combined basis, domestic net sales and online sales increased 52.3% to $46.0 million.
Gross profit rose 43.9% to $28.8 million from $20 million in the same quarter of last year, while income from operations increased to $8.23 million from $6.72 million in the third quarter of 2010.
by RTT Staff Writer
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