VOXX Intl. Shares Plunge 13% On Surprise Q2 Loss, Results Miss Estimates

(RTTNews) - Shares of VOXX International Corp. (VOXX) plunged nearly 13 percent in extended trading on Thursday after the consumer electronics company reported results for the second quarter that missed analysts' expectations.

The company also reported a surprise loss for the quarter compared to a profit last year, hurt by the Venezuela currency devaluation and lower sales.

"Despite the fact that our second quarter results came in lower than expected and we had some delays in new product launches which forced us to lower our guidance, we remain very optimistic with our potential," President and CEO Pat Lavelle said in a statement.

The Hauppauge, New York-based company reported a net loss of $2.68 million or $0.11 per share for the second quarter, compared to net income of $4.86 million or $0.20 per share for the prior-year quarter.

On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter decreased 3.5 percent $177.34 million from $183.82 million in the same quarter last year, and missed four Wall Street analysts' consensus estimate of $185.20 million.

Automotive sales for the quarter declined 4.1 percent to $92.9 million, premium audio sales decreased 4.5 percent to $39.0 million, and consumer accessories sales edged down 0.8 percent to $45.2 million from last year.

Meanwhile, gross margin for the second quarter improved 10 basis points to 29.5 percent, driven by higher gross margins in the automotive segment, nearly offset by lower gross margins in the premium audio segment.

Net Venezuela currency devaluation charge for the quarter was $6.33 million, compared to a small gain last year. This represented the devaluation loss related to the company's Venezuelan bonds that were re-measured at August 31, 2014.

"With new programs that launched in the second quarter, more coming this quarter and a host of opportunities in the early part of Fiscal 2016 and throughout the year, we are well positioned to drive organic growth. Our margins have held steady and in many cases increased, and we've taken steps to lower overhead this year, while we continue to improve our balance sheet," Lavelle added.

VOXX closed Thursday's regular trading session at $7.66, down $1.09 or 12.46% on a volume of 1.56 million shares. The stock plunged a further $0.96 or 12.53% in after-hours trading.