Overview

* Virco Q2 revenue misses analyst expectations, per LSEG data

* Operating income for Q2 falls to $15.4 mln from $21.9 mln last year

* Co maintains high gross margin of 45.2% despite market downturn

Outlook

* Virco does not provide specific financial guidance in press release

Result Drivers

* MARKET DOWNTURN - General downturn in school furniture market led to a 15.1% decline in Q2 shipments

* ABSENCE OF LARGE ORDER - Lack of last year's large disaster recovery order contributed to an 18.9% decline in six-month shipments

* COST MANAGEMENT - Maintained high gross margin of 45.2% despite market challenges

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $92.09 $113.80

mln mln (1

Analyst)

Q2 Net $10.19

Income mln

Q2 Miss $14.17 $18.20

Pretax mln mln (1

Profit Analyst)

Q2 Gross $40.87

Profit mln

Q2 $15.37

Operatin mln

g Income

Analyst Coverage

* The one available analyst rating on the shares is "strong buy"

* The average consensus recommendation for the business support supplies peer group is "buy."

* Wall Street's median 12-month price target for Virco Mfg Corp ( VIRC ) is $12.00, about 27.8% above its September 4 closing price of $8.67

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)