NEW YORK (TheStreet) -- Voxx International (VOXX) plummeted to a one-year low of $6.84 on Thursday after the company reported fourth-quarter earnings that came up well short of analysts' expectations.
The consumer electronics company reported an adjusted loss of 35 cents a share, while analysts had expected earnings of 24 cents a share. Revenue totaled $187.1 million, far less than analysts' expectations of $205.47 million.
Voxx also issued full-year revenue guidance of $825 million to $830 million, compared to the consensus estimate of $870.59 million.
B. Riley also downgraded the stock to "neutral" from "buy."
The stock was down 27.16% to $7.34 at 3:18 p.m. Nearly 2 million shares had changed hands, compared to the average volume of 131,810.
TheStreet Ratings team rates VOXX INTERNATIONAL CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VOXX INTERNATIONAL CORP (VOXX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- VOXX's revenue growth trails the industry average of 12.2%. Since the same quarter one year prior, revenues slightly increased by 1.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although VOXX's debt-to-equity ratio of 0.30 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.09, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 79.35% to -$2.79 million when compared to the same quarter last year. In addition, VOXX INTERNATIONAL CORP has also vastly surpassed the industry average cash flow growth rate of -44.93%.
- You can view the full analysis from the report here: VOXX Ratings Report