Results: VOXX International Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders of VOXX International Corporation (NASDAQ:VOXX) will be pleased this week, given that the stock price is up 15% to US$10.33 following its latest quarterly results. Revenues missed the mark, coming in 16% below forecasts, at US$143m. Statutory profits were a real bright spot in contrast, with per-share profits of US$0.30 being a notable 186% above what the analysts were modelling. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for VOXX International

Taking into account the latest results, the current consensus, from the twin analysts covering VOXX International, is for revenues of US$521.2m in 2024, which would reflect a discernible 7.2% reduction in VOXX International's sales over the past 12 months. Per-share statutory losses are expected to explode, reaching US$0.18 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$622.0m and earnings per share (EPS) of US$0.03 in 2024. There looks to have been a major change in sentiment regarding VOXX International's prospects following the latest results, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.

There was no major change to the consensus price target of US$10.50, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 5.8% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 7.1% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 2.0% per year. The forecasts do look bearish for VOXX International, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting VOXX International to become unprofitable next year. Unfortunately they also downgraded their revenue estimates, and our analysts estimates suggest that VOXX International is still expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for VOXX International going out as far as 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for VOXX International that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.