Shares of VOXX International (NASDAQ:VOXX) rose 58% in Tuesday's premarket trading, lifted by a strong third-quarter earnings report.
The maker of consumer electronics and automotive entertainment systems saw third-quarter sales rise 83% year over year to $201 million. Earnings jumped from $0.10 to $0.74 per share. Your average Wall Street analyst would have settled for earnings near $0.02 per share on revenue in the vicinity of $113 million.
Consumer electronics sales rose 74% to $80 million, driven by high consumer interest in premium audio products. A new distribution deal with Onkyo and Pioneer also contributed to this segment's rapid rise.
In the automotive electronics division, Voxx saw sales jump 105% higher to land at $62 million. This increase was powered by the recent acquisitions of Vehicle Safety Holdings and Directed Electronics Canada, with an assist from rear-seat entertainment systems and aftermarket security products.
The fledgling biosecurity segment posted sales of $300,000 as car makers started to take delivery of iris authentication systems from EyeLock, a Voxx subsidiary.
Voxx CEO Pat Lavelle expects demand for the EyeLock iris-scanning security tools to rise exponentially. Premium audio products from key Voxx brands such as Jensen, Klipsch, and Audiovox should also support solid growth as the automotive industry continues to bounce back from the low sales and closed-down manufacturing lines of mid-2020.
The stock trades at multi-year highs today with the backing of healthy financial results. Growth investors should keep an eye on this exploding turnaround story.