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DUBUQUE, Iowa - Flexsteel Industries , Inc. (NASDAQ:FLXS) saw its shares surge 13% after the furniture manufacturer reported fourth quarter earnings that significantly exceeded analyst expectations, driven by strong margin expansion and sales growth.
The company reported adjusted earnings per share of $1.40 for the fourth quarter, handily beating the analyst estimate of $0.84 by $0.56. Revenue came in at $114.6 million, surpassing the consensus estimate of $111.93 million and representing a 3.4% increase YoY. This marks Flexsteel’s seventh consecutive quarter of year-over-year sales growth.
Flexsteel’s adjusted operating margin expanded dramatically to 9.0% in the quarter, up 340 basis points from 5.6% in the same period last year. The company’s shares jumped 13% following the results, reflecting investor enthusiasm for the strong performance.
"Our strategies are working and drove strong results in the quarter," said Derek Schmidt, CEO of Flexsteel Industries. "While market conditions and macroeconomic uncertainty remain industry headwinds, we continued our growth momentum and delivered 3.4% sales growth in the quarter."
For the full fiscal year 2025, Flexsteel reported net sales of $441.1 million, up 6.9% from $412.8 million in the prior year. Adjusted earnings per share for the year reached $4.17 compared to $2.11 in the prior year.
Looking ahead, Flexsteel provided first quarter fiscal 2026 guidance with expected sales of $105-110 million, above the analyst consensus of $104.1 million, representing growth of 1% to 6% YoY. The company anticipates operating margins between 5.5% and 7% for the quarter.
Management highlighted tariffs as a major risk in the new fiscal year, particularly the 20% tariff on imports from Vietnam, and outlined plans to mitigate these challenges through supply chain adjustments, cost savings initiatives, and limited pricing actions.
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