Why LeapFrog Enterprises (LF) Stock Is Plummeting In Pre-Market Trading Today

NEW YORK (TheStreet) -- Shares of LeapFrog Enterprises Inc. (LF) are declining by -10.69% to $6.60 in pre-market trading on Tuesday, after the company reported a net loss per basic and diluted share of -23 cents for the fiscal 2015 first quarter, compared to a net loss of -5 cents per basic and diluted share for the year ago period.

The company, which develops educational entertainment devices for children, said net sales for the quarter dropped by 43% to $47 million, versus $83 million for the fiscal 2014 first quarter.

"Our business so far this year has been significantly hindered by retail inventory carry-forward from holiday 2013, tough conditions in most of our key markets and the planned later launch of our major new product introductions for the year," said LeapFrog CEO John Barbour.

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Separately, 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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

LF ChartLF data by YCharts

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