ZAGG Inc (NASDAQ: ZAGG) rose sharply in Wednesday trading after the company posted better-than-expected Q1 earnings.
The Salt Lake City-based leading global mobile lifestyle company, recorded net sales of $112.1 million, an increase of 21% compared to $92.9 million;
gross profit of 34% compared to 31%; Net income of $7.0 million compared to a net loss of $6.1 million.
The company also revealed diluted earnings per share of $0.24 compared to diluted loss per share of $0.22. Adjusted EBITDA of $13.6 million compared to $2.7 million
CEO Chris Ahern exulted, "We are pleased with the strength exhibited by our business early in 2018. Our record first quarter sales performance was driven by continued growth of screen protection combined with robust demand for our expanded portfolio of wireless charging products. Both our domestic and international markets posted double digit top-line gains which fueled significant operating expense leverage and a dramatic improvement in profitability compared with a year ago.
"Looking ahead, I am confident that by staying true to ZAGG’s four key corporate objectives of Product, Brand, Distribution and Operational Excellence, we can further leverage our strong leadership position in the mobile lifestyle category to drive sustained growth over the long term."
The Company reiterated the following annual guidance for 2018. Net sales of $550 million to $570 million; gross profit margin as a percentage of net sales in the low to mid 30's range, and adjusted EBITDA of $77 million to $80 million
The shares soared as Wednesday was drawing to a close, hiking $2.58, or 22.4%, to $14.08.
