VIZIO Holding Corp. (NYSE: $VZIO) is an American company based in Irvine, CA. It specializes in the design and sale of sound bars and televisions. The company also has segments focused on viewer data and advertising via its top-of-the-line smart TVs. VIZIO Holding Corp. aims to deliver an immersive home entertainment experience.
VIZIO Holding Corp. Earnings Report
VIZIO Holding Corp. released its latest earnings report for fiscal Q3, 2023, on Friday, November 9, 2023. The company reported a revenue of $426.2 million for Q3, 20223, against an expected $414.5 million, a surprise of 2.82%. While it beat expectations, Q3 revenue represented a 2% drop compared to last year. Its Q3 EPS was $0.07, better than the expected $0.02, a 337.50% surprise. Q3 EPS was much better than last year’s $0.01 during the same quarter.
When looking at other key metrics, VIZIO Holding Corp., on average, met investor expectations. Its Q3 Smart TV shipments were 1.1 million, against a projected 1.14 million. SmartCast active accounts stood at 17.9 million, against an expectation of 17.93 million. Additionally, SmartCast Hours stood at 5,153, against an expectation of 4,810.63 hours. The company’s SmartCast Average revenue per user was $31.55, against a prediction of $31.84.
Net revenue for Platform+ was $156 million, against a projection of $155.03 million, while Net Revenue for the device segment was $270 million, against a forecast of $270.59 million.
VIZIO Holding Corp. (VZIO) Stock Performance
Following the earnings report’s release, VZIO stock jumped as much as 28% during trading on Friday, November 10, 2023. The stock closed at $6.68 per share. While the earnings report significantly boosted VZIO stock, it is still down by 8.62% year-to-date.
A major reason for the drop is that device sales continue to plummet. For Q3, VIZIO Holding Corp. reported revenue from device sales at $ 270 million, a 12% drop from the $307 million reported in Q3 2022.
However, VIZIO Holding Corp. is working to turn things around with the Platform+ segment, which saw a 22% rise in revenue year-over-year. Overall, Platform+ accounts for over 60% of all gross profit, according to the Q3 earnings report. If this trend continues, the segment could soon account for almost half of its revenue in future.
Having realized the potential of Platform+, the company is working to leverage software to grow profit and margins. It is currently seeking partnerships with OEMs to include their connected TV Platform. They have also greatly increased the content available via the platform.
VZIO Stock Forecast
Stock analysts have given VZIO stock a moderate buy rating. They predict a high of $17 and a low price target of $6, with an average price target of $10.43. The average price target represents a 56.14% upside on the current price of $6.68.
Should You Buy VIZIO Holding Corp. (VZIO) Stock
VZIO stock has received a modern buy rating from stock analysts. That indicates they expect the company to outperform the stock market in the next 12 months. With the company’s management pivoting to Platform+, which is doing quite well, it could hit this target.
By carefully studying figures released by the company, including guidance, EPS, and revenue figures, you can make informed choices on whether or not to add VZIO to your portfolio.
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