It's Showtime for LeapFrog Enterprises

Seth Jayson, The Motley Fool
Updated

LeapFrog Enterprises (NYS: LF) is expected to report Q3 earnings on Nov. 5. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict LeapFrog Enterprises's revenues will grow 15.6% and EPS will grow 20.0%.

The average estimate for revenue is $174.3 million. On the bottom line, the average EPS estimate is $0.42.


Revenue details
 Last quarter, LeapFrog Enterprises notched revenue of $71.5 million. GAAP reported sales were 31% higher than the prior-year quarter's $54.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, EPS came in at -$0.12. GAAP EPS were -$0.12 for Q2 compared to -$0.21 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 39.9%, 500 basis points better than the prior-year quarter. Operating margin was -10.5%, 1,360 basis points better than the prior-year quarter. Net margin was -11.3%, 1,400 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $534.2 million. The average EPS estimate is $0.67.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 266 members out of 317 rating the stock outperform, and 51 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give LeapFrog Enterprises a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LeapFrog Enterprises is outperform, with an average price target of $13.00.

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The article It's Showtime for LeapFrog Enterprises originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend LeapFrog Enterprises. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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