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%
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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