Economic Overview - Major indexes have experienced volatility, with soft economic data raising concerns about the economy's health [1][3] - The August jobs data showed private payrolls increased by only 142,000, below the expected 161,000, leading to worries about a cooling labor market [3] - The manufacturing sector continues to struggle, with the ISM manufacturing index declining for the fifth consecutive month [4] Market Performance - The S&P 500 declined 4.3% for the week, marking its worst week since March 2023, while the Nasdaq fell 5.8%, its worst weekly performance since 2022 [4] - September is historically one of the worst months for stocks, with the S&P 500 showing poor performance since 1950 due to portfolio adjustments by investors returning from summer vacations [7][6] Federal Reserve Actions - The Federal Reserve is expected to initiate rate cuts, with a 25 basis point cut anticipated in the upcoming FOMC meeting [5] - There is uncertainty regarding the extent of the rate cuts, especially with the Presidential election approaching [6] Dividend-Paying Stocks - In light of market volatility, investing in dividend-paying stocks is recommended for steady income and capital preservation [2][8] - Companies highlighted for their dividend performance include: - **Virco Mfg. Corporation (VIRC)**: Dividend of $0.03 per share, 0.61% yield, payout ratio of 5% [10] - **Brady Corporation (BRC)**: Dividend of $0.24 per share, 1.29% yield, payout ratio of 22% [12] - **Broadcom Inc. (AVGO)**: Dividend of $0.53 per share, 1.49% yield, payout ratio of 56% [15] - **Verizon Communications Inc. (VZ)**: Dividend of $0.68 per share, 6.23% yield, payout ratio of 58% [17]

Core Viewpoint - Virco Manufacturing Corporation (VIRC) reported mixed results for the second quarter of fiscal 2024, with earnings exceeding expectations while sales fell short, leading to a 9.3% decline in share price following the announcement [1]. Financial Performance - Adjusted earnings were reported at $1.04 per share, surpassing the Zacks Consensus Estimate of $1.00 by 4%, and increased from 95 cents per share in the previous quarter [5]. - Net sales reached $108.4 million, missing the consensus estimate of $115.9 million by 6.5%, but grew 1% year-over-year [5]. - Gross profit increased by 3.4% year-over-year to $50.2 million, with gross margin expanding by 100 basis points to 46.3% [6]. - Operating profit was reported at $21.9 million, compared to $21.2 million in the prior-year quarter [7]. Operational Highlights - The increase in earnings and sales was driven by higher factory output, improved operating efficiencies, and a significant counter-seasonal disaster recovery order [2]. - Although order rates slightly declined during summer, shipments and backlog remained higher than the previous year, indicating confidence in adapting to market changes [3]. Strategic Outlook - The company plans to pursue potential acquisition opportunities to enhance its business capabilities and aims to add shareholder value through quarterly dividends and share repurchases [4]. - Virco's strong financial position supports ongoing investments in new manufacturing equipment and service expansions, positioning the company to capitalize on unexpected opportunities in the post-pandemic market [3]. Financial Position - As of the end of the fiscal second quarter, cash stood at $0.8 million, down from $5.3 million at the end of fiscal 2023, while long-term debt slightly decreased to $4 million [8]. - Inventory at the end of the second quarter was $58.6 million, a slight increase from $58.4 million in the year-ago period [8].

Financial Performance - EPS improved by 9.5% in the second quarter and 33.3% year-to-date to a record $1.16 per share[1] - Operating income reached 20.2% in the second quarter and 16.0% year-to-date, with a record operating income of $21,894,000 in Q2[4] - Revenue increased by 1.0% in the second quarter to $108,419,000 and by 9.1% year-to-date to $155,154,000[2] - Gross profit for the second quarter improved to $50,218,000, with a gross margin of 46.3%[2] - Net sales for the three months ended July 31, 2024, increased to $108,419,000, up from $107,321,000 for the same period in 2023, representing a growth of 1.02%[14] - Gross profit for the six months ended July 31, 2024, was $70,565,000, compared to $61,780,000 for the same period in 2023, reflecting an increase of 14.5%[15] - Net income for the three months ended July 31, 2024, was $16,833,000, compared to $15,534,000 for the same period in 2023, marking a rise of 8.35%[14] - Operating income for the six months ended July 31, 2024, was $24,865,000, compared to $19,942,000 for the same period in 2023, an increase of 24.4%[15] - The company reported a basic net income per common share of $1.04 for the three months ended July 31, 2024, compared to $0.95 for the same period in 2023, an increase of 9.5%[14] Debt and Liabilities - Interest expenses decreased significantly to $322,000 in Q2 from $1,083,000 last year, with year-to-date interest expenses at $530,000[3] - The company is effectively debt-free, marking a significant milestone in its 75-year history[3] - Total current liabilities decreased to $55,506,000 as of July 31, 2024, from $91,063,000 as of July 31, 2023, indicating a reduction of 39%[13] - The current portion of long-term debt decreased significantly to $253,000 as of July 31, 2024, from $32,256,000 as of July 31, 2023[13] Equity and Dividends - Total stockholders' equity increased to $107,812,000 as of July 31, 2024, up from $82,295,000 as of July 31, 2023, representing a growth of 31.1%[13] - The quarterly dividend was increased to $0.025 per share, payable on October 11[1] - The company declared cash dividends of $0.02 per common share for the three months ended July 31, 2024, compared to no dividends declared in the same period of 2023[14] Management Insights - Management noted a slight softening in order rates as summer progressed, indicating potential challenges in post-pandemic recovery[6] - The company completed a 5-year lease renewal on its Torrance headquarters, enhancing its logistical advantages[5] - Management is actively reviewing options for capital allocation, including dividends, share repurchases, and potential acquisitions[10]

Virco Manufacturing Corporation (VIRC) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4%. A quarter ago, it was expected that this company would post a loss of $0.13 per share when it actually produced earnings of $0.13, delivering a surprise of 200%. Over the last four quarters, the c ...

EPS Improves 9.5% in Quarter, 33.3% YTD to Record $1.16 per Share Operating Income reaches 20.2% in Second Quarter; 16.0% YTD Company is Effectively Debt Free; Growth is being Financed by Cash Flow from Operations Company Increases Quarterly Dividend to $0.025 per share, Payable October 11 to Shareholders of Record as of September 20 Order Rates Remain Strong but Recent Trends Suggest Post-Pandemic Recovery May Be Slowing TORRANCE, Calif., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Virco Mfg. Corporation (NASDAQ: V ...

Virco Mfg. Corporation (VIRC) is expected to have generated stronger performance in second-quarter fiscal 2025. In the last reported quarter, VIRC's earnings per share (EPS) and net sales surpassed the Zacks Consensus Estimate by 200% and 24%, respectively. On a year-over-year basis, revenues increased 33.7% and EPS expanded 244.4%. The company's bottom line topped the consensus mark in seven of the trailing eight quarters. Trend in Estimate Revision The Zacks Consensus Estimate for the to-be-reported quart ...

pidjoe Investment Thesis Virco Manufacturing Corp. (NASDAQ:VIRC) is benefiting from the change in the supply-chain picture post-Covid-19. Two characteristics of the US school purchasing process - extreme seasonality and high Price/Cube Threshold - have given it a moat. This has enabled the company to significantly grow revenue and profitability. At the same time, the market has yet to recognize this change of fortune, making Virco an investment opportunity. Background Virco started in the 1950s as a manufac ...

Virco Mfg. Corporation (VIRC) has seen its shares rise steadily, rallying 30.9% in the past three months, outperforming the Zacks Furniture industry's 13.3% growth. The broader Consumer Discretionary sector rose 3.9% and the S&P 500 grew 7.1% in the same time frame. This leading U.S. manufacturer of school furniture is reaping the benefits of its robust market position, operational excellence, strong financials, and strategic advantages in the U.S. school furniture market. VIRC stock also outpaced companies ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis an ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock ali ...