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Virco's (VIRC) Q2 Earnings & Sales Top Estimates, Shares Up
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Virco Mfg. Corporation (VIRC - Free Report) reported impressive second-quarter fiscal 2024 (ended Jul 31) results, with earnings and net sales surpassing the Zacks Consensus Estimate. Following the results, the company's shares jumped 10.4% during the trading session on Sep 11.
The company excelled during this year's back-to-school season, successfully handling a record backlog of deliveries. This achievement is attributed to the company's U.S. factories and logistics teams, which have adapted to the shortened delivery window caused by extended school calendars.
Going forward, the company's vertically integrated model remains highly adaptable to assist schools in adapting their calendars and curricula to address student learning challenges. This adaptability, coupled with strong 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.
Quarter in Detail
Virco reported adjusted earnings of 95 cents per share, which topped the consensus mark of 64 cents by 48.4% and increased 58.3% from the year-ago adjusted level of 60 cents per share.
Net sales of $107.3 million topped the consensus mark of $95 million by 12.7%. The top line grew 30% from the prior-year quarter’s levels of $82.8 million. The growth was backed by the company's U.S. factories and logistics, which successfully converted a record backlog into nationwide on-time deliveries for the new school year. Also, the company's domestic operations achieved improved profitability due to increased volume by stabilizing material and freight costs.
Virco Manufacturing Corporation Price, Consensus and EPS Surprise
In the fiscal second quarter, the gross margin increased 680 basis points (bps) from the prior-year quarter’s levels to 45.3%. The upside was backed by reduced raw material costs and improved operational efficiencies in the company's U.S. factories.
The operating income was $21.3 million, up 90.2% from $11.2 million reported in the prior-year quarter. The encouraging performance was backed by positive impacts of higher revenues combined with higher margins.
SG&A expense increased 31.9% year over year to $27.3 million.
Financials
As of Jul 31, the company had $1.6 million cash, up from $1.1 million at fiscal 2023-end. Long-term debt was $14.3 million, flat compared with the value reported in fiscal 2023-end.
At the end of second-quarter fiscal 2024, the company’s inventory came in at $71.9 million, up from $61.2 million in the year-ago period.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 28.5%, on average. The stock has surged 110.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests growth of 54.5% and 180.3%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) currently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 39.1%, on average. The stock has gained 34.9% in the past year.
The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggests increases of 8.7% and 42%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 42.6%, on average. The stock has gained 27.9% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates growth of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
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Virco's (VIRC) Q2 Earnings & Sales Top Estimates, Shares Up
Virco Mfg. Corporation (VIRC - Free Report) reported impressive second-quarter fiscal 2024 (ended Jul 31) results, with earnings and net sales surpassing the Zacks Consensus Estimate. Following the results, the company's shares jumped 10.4% during the trading session on Sep 11.
The company excelled during this year's back-to-school season, successfully handling a record backlog of deliveries. This achievement is attributed to the company's U.S. factories and logistics teams, which have adapted to the shortened delivery window caused by extended school calendars.
Going forward, the company's vertically integrated model remains highly adaptable to assist schools in adapting their calendars and curricula to address student learning challenges. This adaptability, coupled with strong 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.
Quarter in Detail
Virco reported adjusted earnings of 95 cents per share, which topped the consensus mark of 64 cents by 48.4% and increased 58.3% from the year-ago adjusted level of 60 cents per share.
Net sales of $107.3 million topped the consensus mark of $95 million by 12.7%. The top line grew 30% from the prior-year quarter’s levels of $82.8 million. The growth was backed by the company's U.S. factories and logistics, which successfully converted a record backlog into nationwide on-time deliveries for the new school year. Also, the company's domestic operations achieved improved profitability due to increased volume by stabilizing material and freight costs.
Virco Manufacturing Corporation Price, Consensus and EPS Surprise
Virco Manufacturing Corporation price-consensus-eps-surprise-chart | Virco Manufacturing Corporation Quote
In the fiscal second quarter, the gross margin increased 680 basis points (bps) from the prior-year quarter’s levels to 45.3%. The upside was backed by reduced raw material costs and improved operational efficiencies in the company's U.S. factories.
The operating income was $21.3 million, up 90.2% from $11.2 million reported in the prior-year quarter. The encouraging performance was backed by positive impacts of higher revenues combined with higher margins.
SG&A expense increased 31.9% year over year to $27.3 million.
Financials
As of Jul 31, the company had $1.6 million cash, up from $1.1 million at fiscal 2023-end. Long-term debt was $14.3 million, flat compared with the value reported in fiscal 2023-end.
At the end of second-quarter fiscal 2024, the company’s inventory came in at $71.9 million, up from $61.2 million in the year-ago period.
Zacks Rank & Key Picks
Virco currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 28.5%, on average. The stock has surged 110.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests growth of 54.5% and 180.3%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) currently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 39.1%, on average. The stock has gained 34.9% in the past year.
The Zacks Consensus Estimate for Trip.com Group’s 2023 sales and EPS suggests increases of 8.7% and 42%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 42.6%, on average. The stock has gained 27.9% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates growth of 44.5% and 117.9%, respectively, from the year-ago period’s levels.