Virco (VIRC) Gears Up to Post Q3 Earnings: What to Expect?
Virco Mfg. Corporation VIRC is expected to have generated lower earnings in third-quarter fiscal 2024 on a year-over-year basis due to higher freight and service costs.
In the last reported quarter, the company’s earnings and net sales surpassed the Zacks Consensus Estimate by 48.4% and 12.7%, respectively. On a year-over-year basis, revenues increased by 30% and earnings per share expanded by 58.3% from the year-ago quarter.
Its bottom line topped the consensus mark in each of the trailing four quarters, with an average of 174.4%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has remained stable at 39 cents per share over the past 60 days. The estimated figure indicates an 18.8% decline from the year-ago quarter’s earnings of 48 cents per share.
Virco Manufacturing Corporation Price and EPS Surprise
Virco Manufacturing Corporation price-eps-surprise | Virco Manufacturing Corporation Quote
The consensus mark for net sales is $81.3 million, suggesting a rise of 5% year over year.
Factors to Note
VIRC is likely to have generated soft net sales and lower earnings in the fiscal third quarter. This educational furniture company primarily faces extreme seasonality and generates approximately 50% of its total sales from June to August each year and the remaining 50% in the rest of the year.
This apart, it experiences significant freight and service costs as well as shipping and classroom delivery costs, which ultimately impact the bottom line. These headwinds are likely to have affected its fiscal third-quarter results.
Nonetheless, Virco’s vertically integrated model remains highly adaptable to assist schools in adjusting their calendars and curricula to address student learning challenges. This adaptability, coupled with solid control over inventories, delivery performance and the entire order-to-cash cycle, enables the company to continue serving educators and students in finding innovative solutions to recent challenges.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Virco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Virco currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Some Recent Consumer Discretionary Releases
Leggett & Platt, Inc. LEG reported tepid third-quarter 2023 results, with earnings and sales missing the Zacks Consensus Estimate.
The top and bottom lines declined on a year-over-year basis. The downtrend was caused by persistent weak demand in the Bedding Products and Furniture and Flooring & Textile Products segments, partially offset by strong demand in the Specialized Products segment.
Strategic Education, Inc. or SEI STRA reported impressive results for third-quarter 2023. Its quarterly earnings and revenues topped the respective Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment growth in U.S. Higher Education, driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Adtalem Global Education Inc. ATGE reported impressive results for first-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given solid enrollment growth and strategic initiatives.
The company's accelerated performance across five operational pillars highlights its market-leading scale and healthcare focus. The company also raised its fiscal 2024 guidance. With 80,000 students and 300,000 alumni, ATGE is well-equipped to address critical healthcare provider shortages.
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