Overview

• Virco Q3 sales miss analyst expectation, reporting $47.6 mln vs $85.9 mln analyst estimate

• Company reports Q3 net loss of $1.3 mln, down from $8.4 mln profit last year

• Virco declares quarterly cash dividend of $0.025 per share, payable January 9, 2026

Outlook

• Virco did not provide guidance but sees demand stabilizing at pre-pandemic levels

Result Drivers

• STIMULUS EXPIRATION - Co attributes sales decline to end of pandemic recovery stimulus funds, affecting school furniture demand

• BACKLOG STABILIZATION - Incoming order rates have begun to stabilize, with backlog nearly even with last year's levels

• BALANCE SHEET STRENGTH - Co highlights strong balance sheet with current ratio of 3.98, providing flexibility in downturn

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the business support supplies peer group is "buy."

• Wall Street's median 12-month price target for Virco Mfg Corp is $12.00, about 63% above its December 5 closing price of $7.36

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX12Pt3L

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)