U.S. Markets closed

Zagg skids after cutting 2013 revenue forecast

NEW YORK (AP) -- Shares of Zagg skidded Wednesday after the mobile device accessory maker cut its forecasts for 2013.

THE SPARK: The Salt Lake City company said Tuesday that it now expects to report $212 million to $218 million in revenue in 2013. Its previous guidance called for revenue of $245 million to $252 million. FactSet says analysts expected $241.9 million on average.

Zagg said it was unable to sell more products to existing customers and was unable to expand its domestic and international distribution.

THE BIG PICTURE: Zagg Inc. reported its third-quarter results after the market closed on Tuesday. The totals were in line with a forecast the company gave in October. Its net income fell to $3.2 million, or 10 cents per share, from $3.4 million, or 11 cents per share, a year earlier. Excluding one-time items, Zagg said it earned 19 cents per share. Revenue fell 17 percent to $49.9 million.

Analysts expected earnings of 13 cents per share on $52.5 million in revenue.

Zagg's sales have fallen 14 percent this year.

THE ANALYSIS: Janney Capital Markets analyst David Strasser kept a "Neutral" rating on the stock, saying it's not clear when Zagg will be able to halt the decline in its sales.

"The company does not seem to have a firm grasp of what is causing this slowdown, or how to stop it," he said. "They have done a great job on cost control, and that is commendable, but not enough to offset the sales slide at this point."

SHARE ACTION: Zagg stock fell 60 cents, or 12.7 percent, to $4.12 in afternoon trading. Earlier they reached a three-year low of $4.05. The shares closed at $6.88 on May 2, the day before Zagg reported its first-quarter results.