VOXX International (VOXX) Stock: Gaining Big on Surprise Earnings

VOXX International Corp (NASDAQ: VOXX)

VOXX International Corp is having an incredible day in the market today, and for good reason. The company reported earnings for the second fiscal quarter of 2017. Today, we’ll talk about what we saw from the earnings report, how the stock reacted to the news, and what we can expect to see from VOXX ahead. So, let’s get right to it…

VOXX Gains Big On Strong Earnings

As mentioned above, VOXX International Corp is gaining big today following a strong earnings report. Yesterday, after the closing bell, the company reported its earnings for the second quarter of fiscal 2017, beating expectations in a big way. Here’s what we saw…

  • Earnings Per Share – In terms of earnings per share, VOXX did incredibly well. During the second quarter, analysts expected that the company would generate a loss of $0.01 per share. However, the company blew away expectations by reporting earnings at $0.12 per share, $0.13 ahead of expectations. To add icing to the cake, this proved to be incredible growth over the loss of $0.18 per share reported in the same quarter last year.
  • Revenue – While earnings was overwhelmingly positive. Revenue was a mixed bag of data. During the second quarter, analysts expected that the company would report revenue in the amount of $161 million. Unfortunately, the company missed this estimate, reporting $159.3 million for the quarter. Nonetheless, the report represents growth in revenue in the amount of 3.3%.

How The Stock Reacted To The News

As investors one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly traded company, we can expect to see gains in the value of the stock as a result, Adversely, negative news will generally lead to declines. In the case of VOXX, the news that was released was overwhelmingly positive. While the company did come in slightly low when it came to revenue expectations, they absolutely blew away earnings expectations, breaking their way into the profit. As a result, we’re seeing massive gains in the value of the stock today. Currently (3:18), the stock is trading at $3.58 per share after a gain of $1.03 per share or 40.20% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from VOXX International Corp. At the end of the day, the report that was released in after-hours yesterday was overwhelmingly positive. Perhaps more importantly, it showed that the company has broken through a key barrier. It is no longer operating at a loss, VOXX has made it to the profits. Now, keep in mind that after massive gains like what we’ve seen today, we tend to see a slight correction, bringing the stock down to a more sustainable rate before gains can continue. Nonetheless, when this happens, it’s likely going to be a good idea to buy the dip. At the end of the day, investors invest for growth, and VOXX has proven that it has what it takes to generate growth, even in troubling economic times.

What Do You Think?

Where do you think VOXX is headed moving forward? Join the discussion in the comments below!