LeapFrog Q4 Results Fall Far Short of Estimates
LeapFrog (LF), which makes technology-based toys and learning products, posted Q4 results that fell far short of Street expectations.
LeapFrog reported Q4 revenues of $137.8 million, down 24 percent from a year ago, and well below the Street consensus of $180 million. The company lost 70 cents a share in the quarter; the Street had expected a loss of 18 cents a share.
The company blamed the shortfall on a sharp fall in consumer sentiment, unfavorable exchange rates, widespread discounting and high retail inventories.
LeapFrog said that the retail inventory overhang from Q4 combined with the weak economy “will result in lower shipment levels in the first half of 2009 as we sell through remaining product.”