ZAGG, Inc. (ZAGG) – Buzz Stock of the Day

Shares of mobile device accessory maker, ZAGG, Inc. (Nasdaq: ZAGG) soared as much as 44 percent from Wednesday’s closing price, in morning trading on Thursday after the company announced that it expects higher third quarter and full-year revenue than previously stated.

The Salt Lake City-based company announced that it now expects third quarter 2010 revenues to exceed $22 million, and now guides for full year 2010 revenue growth of 70 percent. This compares to previously issued revenue guidance of 30 percent growth over 2009 results. The main reasons behind the revised guidance were stronger demand for their flagship product, the invisibleSHIELD, more SKUs shipped to existing storefronts, and the successful introduction of various new mobile devices in the quarter.
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Analysts on average expect revenue of $14.6 million, according to Thomson Reuters I/B/E/S.

“Preliminary results for the quarter have exceeded our expectations due to the timing of distribution agreements and new mobile devices sales surpassing industry expectations,” said ZAGG’s President and CEO, Robert G. Pedersen II, in a statement. “Demand has continued to exceed our distributors’ forecasts for the invisibleSHIELD, and we have been successful in getting more branded ZAGG products into the retail distribution channel. The rapid acceptance of mobile devices in the third quarter has also been an important driver for ZAGG sales, and we see this trend continuing in the future.”

ZAGG expects to report financial and operating results for the third quarter ended September 30, 2010, on November 10.

Tags: buzz stocks, earnings guidance, mobile devices, nasdaq, Technology Stocks, zagg

This entry was posted on Thursday, October 14th, 2010 at 1:03 pm by admin and is filed under Consumer Discretionary Stocks, Technology Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.