Zagg Earnings: ZAGG Stock Dives 29% on Poor Q4 Performance

Zagg (NASDAQ:ZAGG) earnings for fiscal fourth quarter of 2019 have ZAGG stock taking a dive after markets closed Wednesday. This is due to its diluted earnings per share (EPS) of 85 cents missing Wall Street’s estimate of $1.01. The screen protector company’s revenue of $189.89 million also fails to reach analysts’ estimates of $207.29 million.

Zagg Earnings: ZAGG Stock Dives 29% on Poor Q4 Performance

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Here’s what else is worth mentioning from the most recent Zagg earnings report.

  • Diluted earnings per share are up 63.46% from 52 cents during the same time last year.
  • Revenue comes in 14.04% higher than the $166.51 million in the fiscal fourth quarter of 2018.
  • Operating income of $21.83 million is a 7.38% increase year-over-year from $20.33 million.
  • The Zagg earnings report also has it bringing in a net income of $25 million.
  • That’s a 74.58% improvement compared to its net income of $14.32 million from the same period of the year prior.

Chris Ahern, Chief Executive Officer of Zagg, said this about the ZAGG stock earnings:

“While we delivered a record quarter in terms of net sales, our overall performance was below our expectations and represented a difficult finish to a challenging year. Unfortunately, a number of factors negatively impacted the performance of our business, including declining smartphone unit sales, higher tariffs, a more difficult than expected holiday season, and additional operating costs from acquired brands.”

The Zagg earnings report also includes its fiscal 2020 outlook. This has it expecting adjusted earnings per share of roughly 50 cents. That doesn’t look good next to Wall Street’s estimate of 64 cents per share for the year.

ZAGG stock was down 29.27% after-hours Wednesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/03/zagg-earnings-hammer-stock-on-miss/.

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