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Heelys Brought to Heel

Shares fall in late trading despite a big quarter.

Heelys (HLYS) rolled past first-quarter estimates and guided in line for the second quarter, but shares fell after the company made cautionary comments on midyear order trends.

The Dallas-based maker of wheeled sneakers made $8.5 million, or 30 cents a share, for the quarter ended March 31, up from the year-ago $1.7 million, or 7 cents a share. Sales surged to $49 million from $14 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a 20-cent profit on sales of $36 million.

The company guided to second-quarter earnings of 37 to 40 cents a share on sales of $65 million to $70 million. Analysts were looking for a 33-cent profit on sales of $68 million.

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For the combined second and third quarters, Heelys said it expects net sales and net income growth of 20-25% over the same combined quarters in 2006. In 2006, the company believes $20 million of net sales shifted from the second quarter to the third quarter due to late shipments as it tried to meet the surging demand for its products.

In addition, Heelys said it believes some of its customers are placing back-to-school orders for earlier delivery in 2007 than they did in 2006.

Shares fell $1.33 after hours Monday to $35.01.