LeapFrog's Stock Plummets, Set To Open At Lowest Level In Over Six Years

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LeapFrog Enterprises Inc.'s stock plummeted 18% in premarket trade Friday, putting it on course to open at the lowest level in over six years, after the educational toy and games company reported late-Thursday a much wider-than-expected fourth-quarter loss and provided a downbeat outlook. The net loss per share widened to $1.08 from 17 cents, compared with the FactSet loss-per-share consensus of 21 cents. Sales slid 36% to $33.9 million, missing the FactSet consensus of $48.6 million. Chief Financial Officer said new product initiatives won't meaningfully impact results until the fiscal 2017 holiday season. For fiscal 2016, he expects sales to contract "considerably" from 2015 and losses to be similar to or greater. The stock has tumbled 56% year to date through Thursday, while the S&P 500 has gained 2.4%.

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