VOXX International Corp (NASDAQ:VOXX)
VOXX International Corp (NASDAQ:VOXX) traded higher in Monday trading session after posting modest top line growth in Q1 2018. A 17.4% increase in Premium Audio sales helped offset investors’ concerns about a (-$3) million loss in the quarter.
VOXX International Corp (NASDAQ:VOXX) is a renowned worldwide leader in automotive consumer electronics. The company boasts of an extensive distribution network that includes power retailers, mass merchandisers and 12-volt specialists. Its footprint extends into some of the biggest markets in Europe, Asia, Mexico, and South America.
VOXX Q1 2018 Financial Results
Net sales for the quarter ending May 31, 2017, increased by 3.6% to $159.1 million compared to $155.5 million reported a year ago. Gross margin, however, dropped to 27.5% from 29.7% due to increased promotion activities geared towards clearing inventory levels.
VOXX International Corp (NASDAQ:VOXX) expects gross margins to improve in the second quarter due to new products coming to market and partnerships in the Automotive and Consumer Accessories segments.
Operating expenses dropped to $51.6 million from $53.2 million as of Q1 2017. Net loss attributed to shareholders dropped to ($3) million from (-$4.3) million reported in Q1 2017. Operating net loss, on the other hand, increased to $7.8 million from $7.1 million as of last year.
Hirschmann Car Communication GmbH Sell
During the quarter, the company entered into a definitive agreement with a subsidiary of TE Connectivity Ltd for the sale of Hirschmann Car Communication GmbH and its subsidiaries. The chief Executive Officer, Pat Lavelle, expects the transaction to lead to a greater concentration of the company’s business in North America.
“While Hirschmann has been a great contributor to our business and has the industry-leading technology, we believe the opportunity to sell at the proposed value is a benefit for our shareholders. Upon completion, we will have a clean balance sheet, lower working capital needs and we expect greater cash flow,” said Mr. Lavelle.
Under the terms of the agreement, Voxx International is to receive €148.5 million for the unit. The transaction is subject to regulatory approval among other customary closing conditions.
VOXX International Corp (NASDAQ:VOXX) Shares have been on an impressive run since the start of the year, a trend that could continue especially with the filling of stellar Q1 2018 financial results. The stock is up by more than 80% since the start of the year having tripled in value in the last 12 months.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $VOXX and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.