Press release just came out. Earnings will be released for full year 2013 and Q4 on Thursday the 6th after the bell. It will be a positive call with not much expectations (70 million or so is the Q4 analyst estimate for revenue and Hoby already committed to 6 cents EPS Q4). There will be another EC in May as per usual for Q1.
BTW, Skullcandy is NOT off the shelves at Best Buy, Target and the new Radio Shack "the 80's want their store back" revamped stores. They are much more predominant in visibility in all three of those locations then Q4 2012. OP, stop your random bashings without research please. We get that you think Hoby is not a business guy. Your predetermined opinion on what a CEO should look like is antiquated. I'm not posting any pertinent info anymore on this board until the conspiracy theories and voodoo pin in the doll nonsense stops. 100's of rants all negative this month is enough. We get it already.
Yep, about 3.5 - 4 million not accounted for. Even less considering some major long holdings. No wonder the volume has been so light lately, not many fluid shares out there being traded. Smart money is holding long (by that I mean until end of year). EPS / Revenue forecasts (analyst side) is for break even (or so) EPS and Y/Y Revenue increase of 4% (2014). Pretty conservative if you listen to Hoby's vision.
Back the truck up boys... Buy on any pullback here. I'd guess we see low 8 to mid 8's at some point prior to EC (which I believe is March 6?).
Getting fun to own thus stock again.
You have to consider that CFO Jason Hodell is new. They probably are doing extra prep work to make sure the numbers and presentation are presented smooth. Not picking on Jason, but during the XChange presentation he sounded a little rough. Wescoat was pretty dry, and they most certainly want to show enthusiasm this time. Just some thoughts why they are going to push this out as long as they can. I also think they want a better grasp on how Q1 is going. The woman's line rolls out March 15th (albeit only in boutique shops for now) and they just released the Real Tree line. The XBoxOne adapter for the Astro line is still not out yet, and that could bring a big bump to that divisions sales .
I'm not going anywhere. 2 things are going on here that I think need to be brought up here. 1 - There is an earnings release forthcoming (by end of February I would guess). This stock will react (depending on the call) with high volume. I'm betting we get some positive news and a few upgrades following the call. 2 - the broader market is pulling back. This stock seams to react better when the market turns down. There is a lot of money being put on the sidelines. Stocks like SKUL that have been beaten down get the attention of funds. Having said all this, we are close yo getting into the 6's before earnings. I would say that if we break 7, it is time to load the truck up. IMO
Microsoft announced they sold 4 million XBoxOne gaming systems last quarter. Skullcandy Astro headsets are 70% of the 200+ market. Kinda hard to believe (along with 3 million PS4's sold during the same period), that there wasn't a significant sales boost to Astro gaming. Even at 1% that's 70,000 head sets or 14 million plus in increased revenue (based on the low end of 200 bucks). There were additional tags and accessories along with other sets sold as well. I would estimate the Astro quarter to be over 20 million and 50 million year/year. That's 25% of Skullcandy's revenue. Add in additional Skullcandy gaming headsets (PLYR 1 and 2 and SLYR) and I wouldn't be surprised if gaming came in at nearly a third of their y/y sales. Gaming is a strong and profitable segment for SKUL. Air Raid was over subscribed last quarter (sold out) as well as some Crusher colors. They will hit the 70 million sales mark Q4. Ink'd, jib and 2XL as well as the Hesh and Smoking buds II series picked up steam. LOGI smoked the quarter with increased sales, expect Skullcandy to do the same. IMO
I was more upset on how they idolized their spokespeople instead of utilizing them yo sell product. There has been a noticeable change in that attitude under the Nike branding model now. They are utilizing their endorsers to sell product now, not limited to, releasing special edition sets from them. It's a different world in Park City lately (focused on selling product not just the culture).
Roc Nation is now going into the Sports field. So there is the answer why a Jay Brown is on he BOD of Skullcandy now. They will be signing exclusive deals with some pretty big names going forward. IMO
Very positive feedback. There is no doubt that Skulllcandy has improved its product quality. Hoby commented (at the ICR XChange) that they were in the past above industry average for warranty claims. They are now below industry average in warranty claims. I would add that this is on top of the best Warranty In the industry. This all leads to loyal repeat customers.
OP, I was making a statement about a the decision to put all their eggs in one basket as Alden/Andrus did at BBY. The fact is that BBY was 30% of their sales 2011/2012. It is under 10% now. They have focused on other channels with higher margins now. The damage is in he past getting out of BBY and other channels that were (as you shout from the rooftops) loaded with choices. An analyst for BBY made a statement that BBY was trying to tailor to specialty electronic companies and with their deep price cuts these specialty companies are now fleeing and it is a DETERRENT to enter the market for these companies. That is EXACTLY what is going to happen as the market consolidates as has been stated in the EC's. Skullcandy will continue to be in BBY, but with less brands around them and at higher margins. The introduction of new products, categories and licensing agreements will insure continued growth and healthy. profits for SKUL.
Hoby's move away from reliance on the Big Box stores is being confirmed this morning. BBY shares are being hammered after reporting abysmal sales. Skullcandy has already taken the hit there (as reported over and over on this board) for over a year now. This move into specialty brand stores and out of the likes of RSH and BBY (and never netting the off price Walmart channel) have been in play for awhile now. I view it as positive. We already know that they have taken a revenue hit this year. Well done sir!
It's drifting lower on anemic volume. Question remains, what impact will the ICR XChange / Press from the event have? Also, what move will it make prior to EC in a few weeks? I'm not a technical guy, but it seems to be consolidating here. I still hold the theory that this is a micro-cap stock with very little float out there (relatively speaking). Major interest in the institutional holdings movement from Oct. -Dec. to be released by 2/15. Did some funds jump in?
I would add that anyone interested in $SKUL (as it is stated on Twitter) follow it on Twitter. The major media players as well as investors follow the feeds and trends. Making comments adds to the buzz. Charles has done a great job in digging into detailed info on the company. It takes a lot of work to stay informed on micro-cap companies and Skullcandy has, in the past, been slow to release information. I see a change in that, and Twitter feeds (Like Charles feed) give you real time info. Jim, thanks for the compliment. We try to be accurate in our information and verify. My Twitter is @Sistowicz.
Hoby mentioned a partnership with Lenovo. There was some praise and numbers about Astro (have 70% of the over $200 market), Number 1 in in-ear. Air Raid is hot and oversubscribed (if you can get one was Hoby's words). 35 million in cash. Net positive EBITDA (not specific if that was q4 or year. 30% decline in revenue y/y 2012/2013 (which we knew). Loss 10's of millions in reducing off price channels (stated they had decreased that by 60%). Anything else Anyone?
I'm waiting for everyone to listen to it before commenting. I can say there wasn't any "new news" out of it that we haven't covered here on the board. They did commit to a return to growth in 2014.
Hoby's presentation should be a good one. You can tune in at the Skullcandy web site under investor relations (presentations).