Sequential Brands Group delivered a strong first quarter that beat analysts’ expectations and saw revenue grow 150 percent over last year.
Non-generally accepted accounting principles’ net income for the quarter was $2.5 million, or 4 cents a diluted share, up from $1.3 million, or 3 cents, a year ago. This beat the FactSet estimate for a flat performance. On a GAAP basis, the net loss was $1.1 million or a negative 2 cents per diluted share.
Total revenue for the three months ended March 31 increased 150 percent to $34 million from $13.6 million a year earlier.
“Our 2016 fiscal year is off to a strong start with Q1 revenue up 150 percent from the prior year, driven by a combination of contributions from the brands acquired in 2015 and increased revenues from the balance of our portfolio,” said chief executive officer Yehuda Shmidman. “We are on track to achieve high single-digit organic growth for full year 2016 and remain focused on executing our activation playbook.”
The company said the Martha Stewart Living Omnimedia merger was on track and expects the 12-month run rate to be $150 to $155 million in revenue.
Sequential reiterated its guidance for the year ending 2016 for revenue to be in the range of $145 to $150 million. The Capital IQ estimate for revenue is $149.5 million. The company also said it is continuing to review potential acquisition candidates and will be looking for consumer brands with high potential for growth.
The stock is rising over 1 percent to $6.17 and has dropped 50 percent for the past year.