LeapFrog Jumps 18% after Earnings Beat

Shares of LeapFrog

are seeing much strength after the company reported first quarter earnings yesterday, which beat analysts' estimates. LeapFrog reported first-quarter EPS of $-0.14 versus the estimated $-0.26 per share. Revenues came in at $72M versus the estimated $51.00M, beating by +41.2%. First quarter 2012 net sales were $72 million, up 81% compared to $40 million last year, and included a 1% negative impact from changes in currency exchange rates. Net sales growth was primarily driven by lower retail inventory at the start of the year compared to last year, an earlier Easter, strong content sales, and continued high consumer demand for LeapPad. First quarter 2012 net sales increased 98% in the U.S. segment and increased 49% in the international segment, with international segment net sales including unfavorable changes in currency exchange rates of two percentage points. Commenting on the positive quarter, LeapFrog's CFO Mark Etnyre said, "While it's early in the year, we're out of the gate strong and executing against our stated goal of growing our earnings and delivering strong cash flow through." "As a result, we improved our bottom line by $0.20 per share and generated $63 million of net cash flow in the first quarter. With our leading educational entertainment portfolio, strong team, and commitment to innovation in technology, education, and content, we are well positioned to deliver earnings and cash flow growth in 2012 and beyond." LeapFrog also increased its 2012 guidance. "Given the strength of our first quarter results, we are raising our full year 2012 guidance," continued Mr. Etnyre. Currently, shares of LeapFrog are trading about 18% higher at $10.60 per share.