School furniture maker Virco's FY revenue falls 25% on end of COVID-era subsidies
Overview
U.S. school furniture maker's fiscal yr revenue fell 25%
Net income for fiscal yr dropped sharply compared to prior yr
Company distributed $5.6 mln to shareholders via dividends and share repurchases
Outlook
Company says incoming order rates are running ahead of prior year by low double digits
Virco says shipments plus backlog metric is about 3% lower than last year
Company expects market normalization and recovery in school furniture demand to continue
Result Drivers
MARKET DOWNTURN - Co said revenue decline was driven by end of COVID-era subsidies and completion of pandemic-related backlogs, which had previously boosted results
ORDER NORMALIZATION - Co said incoming order rates are running ahead of prior year by low double digits, indicating a potential market recovery
COST CONTROLS - Management cited tight operating and financial controls as supporting performance during market headwinds
Company press release: ID:nGNX7jlbsx
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Sales |
| $199.65 mln | $258.22 mln (1 Analyst) |
FY Net Income |
| $2.57 mln |
|
FY Operating Income |
| $3.66 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "hold"
Wall Street's median 12-month price target for Virco Mfg Corp is $7.30, about 21.7% above its April 7 closing price of $6.00
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
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