LeapFrog Enterprises' Shares Tumble 25%

By Karen Robinson-Jacobs

Oct. 23, 2003 12 AM PT

Shares of LeapFrog Enterprises Inc. fell 25%, one day after the Emeryville, Calif.-based maker of educational toys reported that its third-quarter profit missed Wall Street estimates.

LeapFrog shares suffered their biggest one-day drop, falling $11.65 to $34.89 on the NYSE. The company said quarterly net income of $33.4 million, or 55 cents a share, compared with $26.7 million, or 50 cents, a year earlier. The latest per-share figure fell short of analysts’ consensus forecast of 61 cents.

Over the last several quarters, the company had exceeded earnings estimates by as much as 50%, noted Bear Stearns analyst Jennifer L. Childe.

LeapFrog had issued no warning that third-quarter earnings would come in at the low end of the company’s guidance range.

-- Karen Robinson-Jacobs