Flexsteel shares surge 7% on earnings beat, raised outlook

Published 03/02/2025, 22:42
Flexsteel shares surge 7% on earnings beat, raised outlook

DUBUQUE, Iowa - Flexsteel Industries , Inc. (NASDAQ:FLXS) saw its shares jump 7% after the furniture manufacturer reported better-than-expected second quarter results and raised its full-year guidance.

The company posted adjusted earnings per share of $0.95 for the quarter ended December 31, 2024, surpassing analyst estimates of $0.63. Revenue came in at $108.5 million, up 8.4% YoY and above the consensus forecast of $102.93 million.

Flexsteel’s CEO Derek Schmidt attributed the strong performance to broad-based growth across core and new markets, stating, "We are competing well and gaining share in a challenging business environment." He noted this marks the fifth consecutive quarter of YoY sales growth for the company.

Looking ahead, Flexsteel raised its fiscal 2025 revenue guidance to a range of $435-445 million, up from its previous outlook of $425-435 million and above analyst expectations of $432.9 million. For the third quarter, the company projects revenue between $110-115 million, compared to the $109.5 million consensus estimate.

However, Schmidt cautioned that recently announced potential tariffs on imports from Mexico and Canada have introduced uncertainty that could materially impact the company’s outlook, given its sizable operations in Mexico. Flexsteel is actively working on plans to mitigate tariff risks.

The company ended the quarter with $11.8 million in cash and no outstanding borrowings on its credit line after generating $6.7 million in cash from operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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