Earnings Review; Keep Zagg on your Small-cap Radar
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    Stock Alert for Zagg Inc. (ZAGG)

    ZAGG Inc. (ZAGG) engages in the design, manufacture and distribution of protective coverings, audio accessories and power solutions for consumer electronic and hand-held devices under the brand names invisibleSHIELD, ZAGGskins, ZAGGbuds, ZAGGsparq and ZAGGmate.  In June 2011, the Company acquired iFrogz, a privately owned company that develops and markets mobile device cases and audio products in the value-priced, lifestyle sector, with an emphasis on design and creativity. The invisibleSHIELD, ZAGG’s patented flagship product, is the original thin film full-body protector, and is available in more than 5,000 precision pre-cut designs with a lifetime replacement warranty. ZAGG products are available online at ZAGG.com and in most major retailers.

    Share Statistics (20-July-11) FY2009 FY2010 % Chg Q12010 Q12011 % Chg
    Symbol ZAGG Revenue, $Mn 38.36 76.14 98.5% 8.78 26.98 207.3%
    Current price $16.06 Gross marg. 57.5% 49.1% -14.6% 56.6% 50.6% -10.6%
    52wk Range: $2.63-$16.24 Oper. margin 14.9% 22.1% 48.3% 18.0%
    Avg Vol (3m): 2,078,100 Net margin 8.8% 13.1% 48.9% 9.0% 12.3% 36.7%
    Market Cap. 393.10M
    Shares Outstanding 24.48M EPS, $ 0.17 0.41 141.2% 0.03 0.13 333.3%

    Source: Reuters.com, SEC Filings.

    Recent News

    ZAGG shares were boosted yesterday after the Salt Lake City-based company announced a distribution partnership with T-Mobile USA Inc. The accessory maker, known for its popular brands like invisibleSHIELD, ZAGGskins, ZAGGbuds and ZAGGsparq, said its mobile device protection products will be distributed by T-Mobile USA nationwide in the United States.  invisibleSHIELD, ZAGG’s flagship product, will be offered initially for the T-Mobile myTouch 4G Slide smartphone, which is set to be available this month.

    “T-Mobile served more than 33 million customers at the end of the first quarter of 2011 and this opportunity will introduce the unique protection provided by ZAGG products to millions of potential new customers for ZAGG,” John W. Melville, ZAGG director of wireless sales, commented in the release.

    ZAGG saw shares climb to $16.24 on Wednesday to set a new 52-week high before closing the day at $16.06, up 4.83% from the previous session’s close. About 2.76 million shares have traded hands during the session, versus the 10-day average volume of 2.95 million. The stock is currently above its 50-day moving average of $12.83 and above its 200-day moving average of $9.67. As per current share price, the market capitalization of the Company stands at $393.10 million and it has 24.48million outstanding shares.

    Financial Summary

    ZAGG posted revenue of $27.0 million for the first quarter ended March 31, 2011, a 207% increase from $8.8 million in the first quarter of 2010, and an 8% sequential decline as compared to $29.3 million in the fourth quarter of 2010.

    Gross profit for the first quarter was $13.6 million, compared to $4.9 million in the first quarter of 2010, and $13.4 million in the previous quarter. Gross margin was 51% versus 56% in the same period a year ago and 46% in the previous quarter. The Company attributed the higher gross margins in the first quarter to the high level of online sales, particularly of the ZAGGmate, ZAGG’s tablet computer case with keyboard for the Apple iPad.

    The Company posted a first-quarter net income of $3.3 million, or $0.13 per share, up from the year-ago quarter’s net income of $0.8 million, or $0.03 per share, in the first quarter of 2010, and flat sequentially.

    Financial Strength (20-July-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 1.18 1.29 1.22 0.71
    Current Ratio (MRQ) 2.37 1.70 1.65 1.05
    LT Debt to Equity (MRQ) 0.00 33.03 19.49 125.26
    Total Debt to Equity (MRQ) 11.92 43.18 37.97 164.34
    Interest Coverage (TTM) 18.07 0.17 0.22 18.67

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among eight polled investment analysts. Against the Zagg Inc company.

    Analyst Detail

    Buy

    Outperform

    Hold

    Underperform

    Sell

    No Opinion

    Latest 6 2 0 0 0 0
    4 weeks ago 6 1 0 0 0 0
    2 months ago 6 1 0 0 0 0
    3 months ago 6 0 0 0 0 0
    Last year 3 0 0 0 0 0

    The six analysts offering 12-month price targets for ZAGG have a median target of 17.00, with a high estimate of 20.00 and a low estimate of 11.00. The median estimate represents a 10.97% increase from the last price of 15.32.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates

    Mean

    High

    Low

    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 5 39.61 45.00 25.24
    Quarter Ending Dec-11 5 47.65 53.50 32.08
    Year Ending Dec-11 5 137.12 149.98 97.36 66.00
    Year Ending Dec-12 4 180.78 212.68 112.40
    EARNINGS (per share)
    Quarter Ending Sep-11 5 0.16 0.19 0.12
    Quarter Ending Dec-11 5 0.21 0.25 0.16
    Year Ending Dec-11 6 0.56 0.67 0.26 0.30
    Year Ending Dec-12 5 0.69 0.90 0.37
    LT Growth Rate (%) 3 25.83 27.50 25.00

    Technical Analysis

     

    Source: http://stockcharts.com

    ZAGG is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

    The MACD for ZAGG currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    July21-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Apple Inc. AAPL 386.90 357.79B 15.49 13.27 3.45 2.84
    Forward Industries Inc. FORD 2.96 23.93M n/a n/a n/a n/a
    Motorola Mobility Holdings Inc. MMI 22.38 6.60B 29.84 13.90 0.49 0.44
    Specialty Retail – Other Median       1,654.80 n/a 181.22 n/a
    Zagg Inc. ZAGG 16.01 391.88M 24.26 18.84 2.66 1.92

    Source: Thomson Financial

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    One Response

    1. GOOD REPORT ON ZAGG. THANKS

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