Zagg slashes 2Q revenue outlook; shares fall

Zagg slashes 2nd-quarter revenue outlook on lack of device launches, Europe; shares fall

Associated Press

SALT LAKE CITY (AP) -- Shares of Zagg Inc. fell sharply in after-hours trading Tuesday after the maker of mobile device accessories guided its second-quarter revenue outlook below Wall Street's expectations.

Zagg said it expects revenue of $51 million, compared to the $57.5 million expected by analysts polled by FactSet. The company blamed the lack of major device launches, slower-than-expected retail distribution expansion and softness in Europe.

The company also cut its full-year revenue forecast to $245 million to $252 million. Analysts had been expecting $273.4 million in annual revenue.

Zagg reports its second-quarter earnings on Aug. 1.

Its shares fell 71 cents, or 12 percent, to $5.15 in after-hours trading after closing up 7 cents at $5.86 in the regular session.