(Reuters) - Shares of Skullcandy Inc SKUL.O rose as much as 53 percent a day after the headphones maker reported better-than-expected fourth-quarter results and forecast strong sales this year.
The company reported an adjusted profit of 13 cents per share, beating the average analyst estimate of 9 cents.
Skullcandy, which reported results after the market closed on Thursday, said it expected 2014 adjusted earnings per share of 10-14 cents with mid- to high-single digit percentage growth in net sales.
Analysts were expecting 2014 earnings per share of 10 cents, according to Thomson Reuters I/B/E/S.
“With clean inventories, accelerating new product introductions, new distribution opportunities, and international growth potential, it is clear that the painful market reset experienced in 2013 has better positioned SKUL for 2014,” D.A. Davidson & Co analyst Andrew Burns wrote in a note.
Skullcandy launched a realignment of its products and marketing last June, bringing in a new finance chief and closing its office in San Clemente, California.
Burns raised his rating on the stock to “neutral” from “underperform”.
Roth Capital analyst Dave King said the company was regaining traction, helped by the success of its new products such as Crusher headphones and Air Raid bluetooth speakers.
Skullcandy shares were up 35.8 percent at $10.15 in early trading on Friday, making it one of the top percentage gainers on the Nasdaq. They hit $11.40, the highest since November 2012.
Reporting by Abhirup Roy in Bangalore