VOXX Stock NYSE:VOXX International Corporation Financial Trajectory

n a recently released financial report, VOXX (NASDAQ: VOXX) registered an underperformance in the first quarter, with earnings per share (EPS) standing at $-0.45, which missed the analyst estimate of $-0.04 by a significant $0.41. Revenue for the same quarter totaled $111.93 million, falling short of the market consensus, which projected earnings to reach approximately $125.38 million.

The company's financial situation reflects a fluctuating stock price, which stands at $11.34. Over the past three months, the price has taken a downward trajectory, dipping by 18.12%. However, on a year-on-year basis, VOXX's stock price has witnessed a 24.48% increase.

InvestingPro has categorized VOXX's financial health as "fair performance," a sentiment echoed in the market's response to its earnings over the past quarter. The company experienced zero positive EPS revisions, with one negative revision registered within the last 90 days.

On a more granular note, VOXX International recorded a GAAP EPS of -$0.45 in Q1, a shortfall of $0.23. The company's revenue stood at $111.93 million, marking a year-on-year decrease of 13.1%, and missing the estimate by $10.4 million. The fiscal Q1 of 2024 witnessed an adjusted EBITDA loss amounting to $4.9 million, in stark contrast to the $0.1 million loss in the same quarter of the previous fiscal year. The market reacted with a 10.41% drop in the share price.

VOXX International's yearly report also painted a bleak picture, with the company's shares dipping by 34% to a value of US$8.26 in the wake of the report's release. This downturn is exacerbated by the fact that the statutory losses increased significantly by 234% to US$1.17 per share. The generated revenues of US$534m did manage to surpass expectations by 2.5%, but this seemingly served as a small consolation against the backdrop of the losses.

The market was keen to see whether the company's prospects underwent significant changes or if it would be business as usual after the results were posted. The sole analyst covering VOXX International revised their forecasts for the 2024 revenues to US$524.1 million, largely aligning with the revenue from the previous 12 months. They also projected that losses would shrink by 75% to US$0.30. Before this report, market consensus had pinned the expected revenues at US$521.2 million, with losses per share of US$0.18.

This mix of market sentiment resulted in the consensus price target remaining steady at US$10.50, implying that the business's performance was meeting expectations, notwithstanding the higher forecast losses.

When viewed in a broader context, these forecasts reveal a slowdown in sales, with an expected annual revenue decline of 1.9% by the end of 2024. This is a significant drop from the annual growth of 7.3% over the previous five years. Compared to other companies in the same industry, which are projected to see their revenue grow by 2.4% annually for the foreseeable future, VOXX International is expected to lag behind.

Nevertheless, one of the key takeaways from the analysis is that the forecast for next year's losses per share increased. Although revenue estimates remained unchanged, expectations imply that revenues will underperform compared to the wider industry. The company's intrinsic value did not see any major changes with the latest estimates.

When looking into the future, VOXX International is expected to reveal its latest quarterly earnings report on Monday, 2023-07-10. Analysts predict that the company will report an earnings per share (EPS) of $-0.22. Investors will be keen to see if VOXX International not only meets but exceeds this estimate and provides a positive forecast for the next quarter.

Previous quarters have shown that the guidance (or forecast) given by the company can impact the stock price as much as an earnings beat or miss. The previous quarter saw VOXX International miss the EPS estimate by $0.47, causing a 27.75% plunge in the share price the following day.

However, over the past year, the stock performance of VOXX International has provided a more positive outlook for long-term shareholders. Shares traded at $12.8 as of July 06, reflecting an increase of 44.6% over the last 52-week period. This positive trend offers some reassurance to investors ahead of the earnings release.

The company's insiders, who had purchased shares in the previous 12 months, saw an 11% increase in the company's shares last week. This resulted in a US$28m surge in the company's market worth, with the original US$1.4m purchase now valued at US$2.4m. Although the actions of insiders should not be the sole basis for an investment decision, it's worth considering the activities of the company's leadership. In VOXX International's case, insiders own about 25% of the company, worth roughly US$74m, indicating a level of alignment with the interests of the company's shareholders.

Despite a year of no insider transactions at VOXX International, insiders have shown a marked interest in the stock. Looking at historical data, the all-time high for VOXX stock was recorded on March 06, 2000, at $70.00. The 52-week high was pegged at $14.75, 16.7% above the current share price, and the 52-week low was $6.01, 52.5% below the current share price. The average VOXX stock price over the last 52 weeks stood at $10.13 as of July 07, 2023.
That's TradingNEWS