Overview
Virco Q2 revenue misses analyst expectations, per LSEG data
Operating income for Q2 falls to $15.4 mln from $21.9 mln last year
Co maintains high gross margin of 45.2% despite market downturn
Outlook
Virco does not provide specific financial guidance in press release
Result Drivers
MARKET DOWNTURN - General downturn in school furniture market led to a 15.1% decline in Q2 shipments
ABSENCE OF LARGE ORDER - Lack of last year's large disaster recovery order contributed to an 18.9% decline in six-month shipments
COST MANAGEMENT - Maintained high gross margin of 45.2% despite market challenges
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $92.09 mln | $113.80 mln (1 Analyst) |
Q2 Net Income | $10.19 mln | ||
Q2 Pretax Profit | Miss | $14.17 mln | $18.20 mln (1 Analyst) |
Q2 Gross Profit | $40.87 mln | ||
Q2 Operating Income | $15.37 mln |
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 27.8% above its September 4 closing price of $8.67
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nGNX9Kw4Y0
(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.)