Virco Manufacturing reports strong Q2 results
Virco Manufacturing Corp. (Nasdaq: VIRC), a California-based furniture maker and distributor, announced second-quarter results before the opening bell that substantially beat Wall Street expectations.
For the second quarter, sales were $88.9 million, up 13% from $78.6 million a year earlier, and above analyst expectations of $84.6 million. For the three months ended July 31, Virco’s net income was $11.6 million, or $0.81 a share, above Wall Street expectations of $0.60 per share and up 48% from $7.8 million, or $0.58 a share, during the same period of 2006.
In a morning press release, Virco said strong order rates in spring and early summer translated into strong shipments and proportionately strong earnings during the second quarter.
“We're encouraged by our ability to reap continued efficiency improvements on what remains rather modest volume, relative to our plant capacity,” CEO Robert Virtue said in a statement. “With growth opportunities in our core market, a cost structure equal to or better than global alternatives, a track record of reliable delivery, and a full pipeline of internally developed new products, we're well positioned to further lever our existing infrastructure.”
In today’s trading, shares of the small cap are up 34.29%, or $1.80, at $7.05. Over the last 52 weeks, shares have ranged from $4.85 to $9.59.
