Value Microcaps Motherboard

[researcher59]

SKUL (8.10) looks attractive .... stock is down sharply from the 52wk high of $17.76 and appears to be making a bottom. Skullcandy is in the audio headphone and accessories business.

Company reported Q3 EPS of $0.23 and lowered annual guidance to ~$1.02 .... that implies seasonally strong Q4 guidance of ~$0.51

The Company is tightening its net sales outlook for the full year 2012 to $290-$300 million from a previous outlook of $280-$300 million. A mix shift toward higher-priced, lower margin products and cautiousness regarding the retail environment in Europe and the escalating U.S. promotional environment heading into the important holiday season creates less visibility around gross margin and operating expenses. As a result, the Company is revising its adjusted fully diluted earnings per share outlook for 2012 to $1.00-$1.04 from a previous outlook of $1.10-$1.20. This adjusted earnings per share outlook excludes $0.4 million of after-tax expenses related to the Monster litigation in the first quarter and assumes an effective tax rate of approximately 36.5% and diluted weighted average common shares outstanding of approximately 28.3 million.

Beware the large short interest in the stock, however the good news is that the shorts have been covering and could represent buying pressure as the stock bottoms out ....