Omega Flex, Inc. (OFLX Quick QuoteOFLX - Free Report) reported earnings per share (EPS) of 45 cents for the second quarter of 2024, consistent with the EPS reported in the second quarter of 2023.

Despite the stable EPS, net sales for the quarter decreased to $24.6 million from $25.8 million in the same period last year, representing a 4.7% decline.

For the six months ended Jun 30, 2024, the EPS was 86 cents compared to $1.02 for the same period in 2023, reflecting a decrease. Net sales amounted to $49.8 million during the same time frame, a decrease of 10.7% compared to $55.8 million during the same period in 2023.

Omega Flex, Inc. Price, Consensus and EPS Surprise

Omega Flex, Inc. price-consensus-eps-surprise-chart | Omega Flex, Inc. Quote

Quarterly Performance Overview

Omega Flex's performance in the second quarter of 2024 reflects challenges primarily driven by a reduction in sales unit volumes, which the company attributes to an ongoing suppression in the market influenced by factors like a decline in housing starts. This decrease in volume has directly impacted net income, which for the first six months fell by 15.4% to $8.7 million from $10.3 million in the prior year. For the second quarter alone, net income slightly decreased by 1.3% to $4.5 million from $4.6 million in the second quarter of 2023.

However, Omega Flex managed to partially offset the impact of lower sales and production volumes through effective cost management strategies. These included reductions in raw material costs and operational expenses such as executive incentive and stock-based compensation, product liability reserves, marketing commissions and freight costs.

The company benefited from a lower provision for income taxes and higher interest income during the quarter, which helped mitigate some of the negative impacts on net income.