VZIO - Why Vizio Stock Rocketed 14% This Morning
Shares of Vizio Holding Corp. (NYSE: VZIO) took off like a rocket on Thursday, up by 14.3% as of 11:15 a.m. ET, after the smart TV maker exceeded earnings expectations last night.
Analysts had forecast that Vizio would end Q2 in the red, with an $0.08-per-share loss on sales of $413.2 million. As it turned out, Vizio missed the sales estimate, collecting quarterly revenue of only $408.9 million, but managed to eke out a profit of $0.01 per share.
Was this news good enough to justify a 14% run-up in share price? Although total sales rose only 2% year over year in Q2, on a more granular level the company's very profitable Platform+ software business grew much faster. Sales there were up 69% year over year, and gross profits increased 47%.
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Why Vizio Stock Rocketed 14% This Morning