VOXX - VOXX International: Despite Important Progress But Near-Term Prospects Remains Weak

2024-03-22 02:27:10 ET

Summary

• VOXX International Corporation continues to operate in a challenging business environment as evidenced by the company's most recent quarterly results.
• While the premium audio segment showed signs of life, this was more than offset by pronounced weakness in the automotive business.
• Following the formation of a new joint venture, the company's ailing EyeLock biometrics segment will no longer be a drag on cash flows going forward.
• The company also agreed to settle longstanding arbitration proceedings with former supplier Seaguard Electronics LLC for an aggregate cash payment of $42 million. While painful, the settlement should result in a meaningful non-cash accounting gain in Q4.
• As management expects FY2025 to start on a weak note, it's hard to get excited about the company's near-term prospects. Consequently, I am reiterating my "Hold" rating on the shares.

Note:

I have covered VOXX International Corporation ( VOXX ) previously, so investors should view this as an update to my earlier articles on the company. ...

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