NEW YORK (TheStreet) -- LeapFrog Enterprises (LF) was falling 9.8% to $6.35 on Thursday morning after the educational entertainment company issued guidance for the fiscal year 2014 that was less than analysts' expectations.
For the full year, LeapFrog expects profit between 18 and 25 cents on $554 million to $580 million in sales. Analysts surveyed by Thomson Reuters expected adjusted profit of 53 cents on $605 million in sales. For the fourth quarter 2013, the company reported a profit of $63.9 million, or 90 cents a share, up from $62.3 million, or 89 cents a share, in the same period one year earlier. Net sales fell 24% to $186.7 million. Analysts polled by Thomson Reuters expected $215 million in sales.
LeapFrog's board of directors also approved a repurchase program of up to $30 million through the end of the year.
"The holiday retail environment was very challenging," said CEO John Barbour in the company's statement. "As a result, we were unable to build on the 28% full-year net sales growth we achieved in 2012, and our net sales declined 5% for the year."
TheStreet Ratings team rates LEAPFROG ENTERPRISES INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LEAPFROG ENTERPRISES INC (LF) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."