ZAGG Inc (NASDAQ:ZAGG)
ZAGG Inc (ZAGG), a production solutions for mobile devices company yesterday reported their third quarter 2016 financial results. ZAGG reported a third quarter loss of $7.1 million despite reporting profit in same quarter last year. ZAGG reported third quarter adjusted earnings of $0.29 per share which beat analyst expectations of $0.14 per share. ZAGG reported third quarter revenues of $124.7 million which beat analyst expectations of $121.2 million.
ZAGG Inc CEO’s Comments
“We’re pleased with our results for the quarter and for the first nine months of the year, with record sales and strong operating performance,” commented Randy Hales, President and Chief Executive Officer of ZAGG Inc. “However, we are disappointed with the mophie operating results to date. Consequently, I have assumed the role of interim president at mophie to accelerate the return to profitability and improve overall operating performance while we search for a new president.” Globe Newswire
ZAGG Technical Analysis
ZAGG opened trading yesterday at $6.55 which was up from the previous day’s trading close of $6.50. ZAGG closed trading yesterday at $6.80 and crashed down after market to $5.45, equivalent to a 20% decrease from the closing price. Taking a look at the daily chart we can see the last time ZAGG traded below these levels we have to go back to July 12th when it traded at $5.32. Taking a closer look at the daily chart we can see that before the spike down ZAGG had been in an overall downward trend dating back to October 10th when it traded at $8.10. ZAGG has a float of 25.76 million shares and traded 1.83 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see ZAGG open trading on Wednesday below $5.90 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
ZAGG Inc, together with its subsidiaries, designs, manufactures, and distributes product solutions for mobile devices. It offers solutions, such as glass and film screen protection products, keyboards for tablet computers and mobile devices, keyboard cases, earbuds, cables, and cases under the ZAGG and InvisibleShield brands, as well as portable batteries to charge various devices that utilizes a USB, including smartphones, tablets, handheld gaming systems, and digital cameras. The company also provides earbuds, headphones, mobile power solutions, Bluetooth speakers, cases, and cables for mobile devices under the iFrogz brand in the fashion and youth oriented lifestyle sector. In addition, it offers power management and battery case accessories under the mophie brand. It sells its products through indirect channels, including big box retailers, domestic and international distributors, independent Apple (NASDAQ:AAPL) retailers, university bookstores, and small independently owned consumer electronics stores, as well as directly to retailers or through distributors; and directly to consumers on its Website at ZAGG.com. In addition, the company sells its products to franchisees that operate kiosks and ZAGG branded stores in shopping malls and retail centers in the United States and internationally. ZAGG Inc is headquartered in Midvale, Utah.