FLXS Earnings Prediction
The chart below shows how FLXS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FLXS sees a -0.20% change in stock price 10 days leading up to the earnings, and a +1.82% change 10 days following the report. On the earnings day itself, the stock moves by +1.67%. This data can give you a slight idea of what to expect for the next quarter's release.
FLXS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
100.11M
7.48%
5.82%
Gross Margin
21.93%
28.92%
12.69%
Operating Margin
4.58%
13.37%
125.62%
Net Margin
3.05%
-0.33%
286.08%
EPS
0.57
7.55%
307.14%
No Data Available
FLXS Earnings Analysis
Flexsteel Industries Inc Corporation (FLXS.O) Earnings Conference Call
Positive
Q2 Sales Growth Achievement: Sales growth of 8.4% in Q2 fiscal 2025, reaching $108.5 million, marking the 5th consecutive quarter of year-over-year growth and exceeding guidance of $103 million to $107 million.
Operating Margin Improvement: Operating margin improved to 6.1%, up from 4.6% in the prior year quarter, representing a 150 basis point increase and the 6th consecutive quarter of year-over-year adjusted operating margin improvement.
Strong Financial Health: Generated $6.7 million in operating cash flow during the quarter, ending with a cash balance of $11.8 million and no debt, reflecting strong financial health.
Retailer Appointment Growth: Retailer appointments increased by 18% compared to the prior year's market, indicating strong engagement and positive response to new product launches.
Remarkable Growth Achievement: Expansion initiatives contributed to a remarkable 92% year-over-year growth, showcasing the effectiveness of new product development and market strategies.
Negative
Adjusted Operating Income Analysis: Adjusted operating income was $6,700,000 or 6.1 percent of net sales, which, while an increase from the prior year, was significantly impacted by a $5,000,000 pretax gain from the sale of the Dublin facility, indicating underlying operational challenges.
Sales Decline Analysis: The home styles ready to assemble brand experienced a nearly 30% decline in sales, highlighting significant competitive pressures and market challenges in that segment.
Tariff Impact on Costs: Potential tariffs on Mexican imports could lead to an estimated $1,500,000 to $2,000,000 increase in monthly costs, posing a substantial risk to profitability and free cash flow.
Sales Growth Challenges: Despite overall sales growth of 8.4%, the company faces a soft industry demand environment, which could hinder future growth prospects and margin expansion.
Q3 Sales Growth Outlook: The guidance for Q3 sales growth is only projected at 3% to 7%, reflecting a slowdown compared to previous quarters and indicating potential headwinds in consumer demand.
FLXS FAQs
How does FLXS typically perform around its earnings report dates?
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FLXS Earning Call Sentiment
Earnings call transcript: Flexsteel Q2 2024 earnings beat expectations
FLXS.O
-0.51%Positive
The earnings call presents mixed signals. Strong financial performance with net sales exceeding guidance and consecutive margin improvements are positive. However, potential tariff impacts, supply chain challenges, and soft industry demand pose significant risks. The management's vague responses on tariff impacts and cost management raise concerns. Despite being debt-free and having a solid cash position, the uncertainty around tariffs and economic factors tempers optimism. Thus, the stock price is likely to remain stable, reflecting a neutral sentiment.
