Smart TV Maker Vizio Tops First-Quarter Goals, But Stock Drops Late

Smart television maker Vizio (VZIO) late Tuesday topped Wall Street’s targets for the first quarter. But Vizio stock sank in extended trading.


The Irvine, Calif.-based company earned 2 cents a share on sales of $505.7 million in the March quarter. Analysts expected Vizio to lose 10 cents a share on sales of $484.1 million. In the year-earlier period, Vizio earned 5 cents a share on sales of $332.5 million.

It was the company’s first earnings report since Vizio stock went public.

Hardware sales totaled $453.5 million in the first quarter and accounted for 90% of total sales. Vizio boasted having the No. 2 best-selling TV brand in the U.S. in the first quarter and the No. 1 best-selling soundbar.

Vizio Advertising Sales Up 120%

Vizio makes low-priced smart television sets and soundbars. It also provides a platform for selling ads targeting users of its connected TVs, much like rival Roku (ROKU).

The company’s platform business generated $52.2 million in the March quarter and provided 10% of total sales. The platform business grew 120% year over year while device revenue increased 47%.

Vizio ended the first quarter with 13.4 million active accounts, up 57% year over year. Average revenue per user increased 76% to $14.52.

“We see tremendous opportunity ahead,” Chief Executive William Wang said in a news release. “The evolution of TV is calling for a revolution, and Vizio is here to answer it.”

Vizio Stock Flirts With Buy Zone

In after-hours trading on the stock market today, Vizio stock slid 6.1%, near 25.75. During the regular session Tuesday, Vizio stock climbed 3% to 27.41.

On April 28, Vizio stock broke out of an IPO base at a buy point of 26, according to IBD MarketSmith charts. It jumped to a record high of 28.80 the next day. But since then, Vizio stock has traded in and out of the 5% buy zone.

Vizio stock began trading on March 25 with its initial public offering priced at $21.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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