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Flexsteel (FLXS) to Report Q4 Earnings: What's in Store?

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Flexsteel Industries, Inc. (FLXS - Free Report) is slated to report its fourth-quarter fiscal 2024 results on Aug 19, after market close.

In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 19.6% and increased 139.3% year over year. Net sales topped the consensus mark by 5% and increased 8.2% from the prior-year’s level.

FLXS’ bottom line topped the consensus mark in two of the trailing four quarters, met on one occasion and missed once, an average surprise being negative 4.8%.

Trend in Estimate Revision

The Zacks Consensus Estimate for Flexsteel’s fiscal fourth-quarter earnings has remained stable at 70 cents over the past 60 days. The estimated figure indicates a 94.4% rise from the year-ago earnings of 36 cents per share.

Flexsteel Industries, Inc. Price and EPS Surprise

Flexsteel Industries, Inc. Price and EPS Surprise

Flexsteel Industries, Inc. price-eps-surprise | Flexsteel Industries, Inc. Quote

The consensus mark for net sales is pegged at $110.04 million, indicating a year-over-year growth of 4%.

Factors to Note

Flexsteel’s net sales and earnings are likely to have increased in the fiscal fourth quarter, backed by favorable year-over-year comparison. Also, the company might have benefited from market share gains, expanded sales channel distribution and new product introductions.

The company is also benefiting from new product rollouts beyond the core living room merchandise like Charisma (a new lower-priced furniture brand) and homestyles (a value-price brand sold online) along with sub-brands such as Flex (small-parcel modular furniture) and Zecliner (a specialty recliner with zero-gravity lift for people who are unable to sleep on traditional mattresses).

Moreover, FLXS implemented freight surcharges on its products in June in response to higher ocean freight costs, which might have helped its bottom line.

However, ongoing near-term macroeconomic uncertainty amid elevated interest rates and ongoing inflation is a major concern.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for FLXS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FLXS currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Releases

Leggett & Platt, Incorporated (LEG - Free Report) reported lackluster results for second-quarter 2024. Earnings matched the analysts’ expectations, while net sales missed the same. The metrics declined on a year-over-year basis due to persistent weak demand in most of the end markets served.

For the full year, LEG lowered sales guidance and narrowed adjusted EPS guidance. The company noted that demand in the residential end markets remains weak as consumers continue to delay big-ticket, discretionary purchases. Also, the global automotive market remains volatile due to a slower-than-expected shift to electric vehicles and disruption from new Chinese market entrants.

Mohawk Industries, Inc. (MHK - Free Report) reported mixed results for the second quarter of 2024 (ended Jun 29). Its earnings surpassed the Zacks Consensus Estimate and improved year over year.

On the other hand, net sales declined on a year-over-year basis and missed the consensus mark.

American Public Education, Inc. (APEI - Free Report) reported second-quarter 2024, wherein earnings met the Zacks Consensus Estimate and significantly improved from the previous year.

Revenues marginally missed the analysts’ expectations but increased year over year on the back of contributions from the American Public University System, Hondros College of Nursing and Rasmussen University segments. Yet, lower revenues from Graduate School partially offset the growth.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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