Classroom furniture maker Virco's Q2 revenue falls, cites cautious school spending
Classroom furniture maker Virco's Q2 revenue falls, cites cautious school spending
Overview
US school furniture maker's Q2 revenue fell yr/yr to $87.5 mln
Q2 net income declined yr/yr to $8.6 mln
Company cites cautious school spending amid budget uncertainties as reason for declines
Outlook
Company expects typical lower second-half volume to limit impact of recent demand improvement
Virco anticipates capital expenditures will remain within typical $4 mln to $6 mln annual budget
Result Drivers
CAUTIOUS SCHOOL SPENDING - Co said school administrators were cautious with spending due to budget uncertainties
RECENT DEMAND IMPROVEMENT - Co said demand improved slightly after approval of new school budgets, but impact expected to be limited
US MANUFACTURING ADVANTAGE - Co said its US-based manufacturing model provides cost control, delivery, and customer service benefits
Company press release: ID:nGNXz3q7w
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $87.47 mln | $72.10 mln (1 Analyst) |
Q2 Net Income |
| $8.61 mln |
|
Q2 Operating Income |
| $10.55 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "hold"
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 $6.50, about 7.4% above its September 3 closing price of $6.05
The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 31 three months ago
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(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.)
Recent news on Virco Mfg
See all newsVirco Mfg Corp reports results for the quarter ended April 30 - Earnings Summary
Classroom furniture maker Virco's Q2 revenue falls, cites cautious school spending
Brief: Virco Q2 Sales USD 87.466 Million
Virco Mfg Corp expected to post earnings of 7 cents a share - Earnings Preview
Virco Q1 revenue falls 9.1% on weaker furniture demand