Skullcandy shares up on quarterly results beat
(Reuters) - Skullcandy Inc (SKUL.O) shares were set to open about 11 percent higher on Friday after the headphone maker posted better-than-expected quarterly results on higher growth across all its businesses.
The company, known for headphones sporting bold color schemes and patterns, reported second-quarter net income of $6.8 million, or 24 cents per share. Analysts had expected earnings of 22 cents per share, according to Thomson Reuters I/B/E/S.
"Topline trends were solid as the company benefited from higher average selling prices and growth at existing customers," Jefferies & Co analyst Randal Konik wrote in a research note to clients.
Skullcandy, which raised $188 million in an upsized IPO last year, sponsors athletes and musicians, including Snoop Dogg.
It competes with Sony Corp (SNE.N) (6758.T) and privately held Bose Corp.
Jefferies maintained its "buy" rating on the stock, but lowered its price target to $20 from $22, saying its expects lower margins in the back half of the year due the company's continued shift to lower-margin products.
The company said it plans to launch its new line of Astro and Skullcandy gaming products as well as new headphone styles in the second half of the year.
Shares of the Park City, Utah-based company traded at $15.22 before the bell on Friday.
(Reporting by Supantha Mukherjee in Bangalore; Editing by Don Sebastian)
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