Shares of consumer electronics specialist Audiovox (NASDAQ: VOXX) surged as much as 27% in early trading, as traders reacted to the company's solid third-quarter earnings results. After the close on Friday, VOXX reported that quarterly earnings rose to 29 cents per share from 20 cents in the same quarter last year. Analysts were looking for a profit of 19 cents per share. Sales for the quarter jumped 6.6% to $195.6 million from $183.6 million last year. The company also noted that gross-profit margin widened to 19.9% from 19.1%.
Outside of earnings, Audiovox announced a partnership with Sony (NYSE: SNE) to bring the company's popular Playstation 2 gaming console to automobiles. According to VOXX's presentation at this year's Consumer Electronics Show, the firm plans 3 models, though details such as an official product name, price, or shipping date have yet to be revealed. The systems should begin shipping in the middle of next year, with analysts pricing the base unit at about $299.
To continue reading this article, click here: http://www.schaeffersresearch.com/commentary/content/audiovox+rejected+by+resistance+despite+strong+third-quarter+profit/observations.aspx?click=home&ID=90438
Joseph Hargett, 513-589-3800