Virco's (VIRC) Q1 Earnings & Sales Top Estimates, Shares Up
Virco Mfg. Corporation VIRC reported impressive first-quarter fiscal 2024 (ended Apr 30) results wherein both earnings and net sales surpassed the Zacks Consensus Estimate. Following the results, the shares of the company jumped 8.6% during the trading session on Jun 12.
The company’s optimistic outlook regarding its growth momentum is backed by a solid increase in backlog. This reflects a robust recovery in public and private education following the disruptions caused by the pandemic.
Quarter in Detail
Virco reported an adjusted loss of 9 cents per share, which was narrower than the consensus estimate of a loss of 17 cents. Also, the company’s loss narrowed from the year-ago loss of 32 cents per share.
Net sales of $34.9 million topped the consensus mark of $34 million by 2.6%. The top line grew 8.7% from the prior-year quarter’s levels of $32.1 million. The growth was backed by robust demand recovery by private and public education institutions because of increased in-person schooling post-pandemic.
Virco Manufacturing Corporation Price, Consensus and EPS Surprise
Virco Manufacturing Corporation price-consensus-eps-surprise-chart | Virco Manufacturing Corporation Quote
As of May 31, 2023, “shipment & backlog” reached a new record high of $167.9 million, up 16.4% year over year. Notably, Virco typically books orders and builds inventory during the first and fourth quarters. The company then delivers between 50% and 60% of total annual revenues in the second and third quarters, which correspond to “summer vacation” in most public and private schools.
In the fiscal first quarter, gross margin increased 750 basis points (bps) from the prior year quarter to 37.8%.
The operating loss was $1.3 million, narrower than $4.7 million loss reported in the prior-year quarter. The encouraging performance was backed by broad positive impacts of higher revenues combined with higher margins. SG&A expense was almost flat year over year at $14.5 million.
Financials
As of Apr 30, the company had $0.6 million of cash, down from $1.1 million at fiscal 2023-end. Long-term debt was $14.3 million, flat with the value reported in fiscal 2023-end.
Net cash used in operating activities for the reported quarter totaled $11.7 million compared with $19 million in the prior-year period. Capital expenditures were $1.5 million in the quarter compared with $0.6 million in the previous year quarter.
Zacks Rank & Recent Consumer Discretionary Releases
Virco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
JAKKS Pacific, Inc. JAKK reported first-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Revenues surpassed the consensus estimate for the sixth straight quarter. However, both metrics declined on a year-over-year basis.
JAKK incurred an adjusted loss of 62 cents per share, narrower than the Zacks Consensus Estimate of a loss of 75 cents. In the prior-year quarter, JAKK reported an adjusted loss per share of 37 cents.
Quarterly revenues of $107.5 million surpassed the consensus mark of $91 million by 18%. However, the top line declined 11% on a year-over-year basis. The downside was mainly due to dismal sales in North America.
Hasbro, Inc. HAS reported mixed first-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. Both metrics declined on a year-over-year basis.
In the fiscal first quarter, HAS reported adjusted earnings per share (EPS) of 1 cent, missing the Zacks Consensus Estimate of 4 cents. For the prior-year quarter, it had reported an adjusted EPS of 57 cents.
Net revenues of $1,001 million beat the Zacks Consensus Estimate of $876 million. However, the top line declined 13.9% year over year. Dismal performances of Franchise Brands, Partner Brands and Portfolio Brands affected the top line.
Mattel, Inc. MAT reported decent first-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Yet, the top and bottom lines declined on a year-over-year basis.
In the quarter under review, MAT reported a loss per share of 24 cents, narrower than the Zacks Consensus Estimate of a loss of 26 cents. In the year-ago quarter, the company reported adjusted EPS of 8 cents.
Net sales during the quarter amounted to $814.6 million, beating the Zacks Consensus Estimate of $746 million. The top line declined 22% year over year. On a constant-currency basis, sales declined 21% from the prior-year quarter’s figure.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hasbro, Inc. (HAS) : Free Stock Analysis Report
Mattel, Inc. (MAT) : Free Stock Analysis Report
JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report
Virco Manufacturing Corporation (VIRC) : Free Stock Analysis Report
