Flexsteel CIO: "3D Cloud has a unique mix of leading technology, straightforward pricing, and a holistic solution that addresses the critical challenges in 3D product visualization for furniture manufacturers." DUBUQUE, Iowa, Sept. 16, 2024 /PRNewswire/ -- Flexsteel Industries, Inc. (NASDAQ:FLXS), one of the oldest and largest manufacturers, importers, and marketers of residential upholstered and wooden furniture products in the United States, today announced its partnership with 3D Cloud™, the leading prov ...

Core Insights - Flexsteel Industries (FLXS) reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and showing significant growth from $0.36 per share a year ago, resulting in an earnings surprise of 11.94% [1] - The company achieved revenues of $110.82 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.19% and increasing from $105.82 million year-over-year [2] - Flexsteel shares have increased approximately 93.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $96.68 million, while the estimate for the current fiscal year is $2.87 on revenues of $419.99 million [7] - The estimate revisions trend for Flexsteel is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Furniture industry, to which Flexsteel belongs, is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [8] - Another company in the same industry, Hooker Furniture (HOFT), is expected to report a quarterly loss of $0.05 per share, reflecting a year-over-year change of -171.4% [9]

Core Viewpoint - Flexsteel Industries, Inc. (FLXS) is expected to report its fourth-quarter fiscal 2024 results on August 19, with positive earnings and sales growth anticipated based on previous performance and market conditions [1][2][3]. Group 1: Earnings and Sales Performance - In the last reported quarter, FLXS's earnings exceeded the Zacks Consensus Estimate by 19.6% and increased by 139.3% year over year [1]. - The earnings estimate for the upcoming fourth quarter remains stable at 70 cents, indicating a 94.4% rise from the previous year's earnings of 36 cents per share [2]. - The consensus estimate for net sales is projected at $110.04 million, reflecting a year-over-year growth of 4% [2]. Group 2: Contributing Factors - FLXS's anticipated increase in net sales and earnings is supported by favorable year-over-year comparisons, market share gains, expanded sales channels, and new product introductions [3]. - The company has launched new product lines, including Charisma and homestyles, which cater to different market segments, enhancing its product offerings [4]. Group 3: Pricing Strategies and Market Conditions - FLXS implemented freight surcharges in June due to rising ocean freight costs, which may positively impact its bottom line [5]. - However, ongoing macroeconomic uncertainties, such as elevated interest rates and inflation, pose challenges for the company [5]. Group 4: Earnings Prediction Model - The current earnings prediction model does not indicate a strong likelihood of an earnings beat for FLXS, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [6][7].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Flexsteel Industries (FLXS) as a strong stock opportunity based on various valuation metrics [1][2][7]. Group 1: Value Metrics - Flexsteel Industries (FLXS) has a Zacks Rank of 2 (Buy) and an A for Value, indicating it is a high-quality value stock [4][3]. - The stock is currently trading with a P/E ratio of 12.63, which is lower than the industry average of 14.13 [4]. - FLXS has a P/B ratio of 1.33, significantly lower than the industry average P/B of 3.55, suggesting it is undervalued [5]. - The P/CF ratio for FLXS is 10.32, compared to the industry average of 14.40, further indicating potential undervaluation [6]. Group 2: Historical Performance - Over the past year, FLXS's P/E has fluctuated between a high of 23.87 and a low of 8.41, with a median of 10.38 [4]. - The P/B ratio for FLXS has ranged from a high of 1.46 to a low of 0.59, with a median of 0.74 [5]. - The P/CF ratio has varied from a high of 11.50 to a low of 4.37, with a median of 6.05 [6]. Group 3: Investment Outlook - The combination of FLXS's strong earnings outlook and its current valuation metrics suggests it is likely being undervalued, making it an attractive investment opportunity [7].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Flexsteel Industries (FLXS) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 47.3%, with projected EPS growth of 140.2% this year, significantly outperforming the industry average of 12.5% [5] Group 2: Financial Metrics - Flexsteel's asset utilization ratio is 1.45, indicating that the company generates $1.45 in sales for every dollar in assets, surpassing the industry average of 1.22 [6] - The company's sales are expected to grow by 4.6% this year, while the industry average is stagnant at 0% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Flexsteel, with the Zacks Consensus Estimate for the current year increasing by 7.2% over the past month [9] - Flexsteel's strong metrics and positive earnings estimate revisions contribute to its Growth Score of A and a Zacks Rank of 2 [10]

Core Viewpoint - The article highlights Flexsteel Industries (FLXS) as a strong value investment opportunity, supported by various valuation metrics indicating it is currently undervalued compared to its industry peers [4][8]. Valuation Metrics - Flexsteel Industries has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4][3]. - The current P/E ratio for FLXS is 12.06, which is lower than the industry average of 14.05, suggesting it may be undervalued [4]. - The P/B ratio for FLXS is 1.25, significantly lower than the industry average of 3.51, further indicating attractive valuation [5]. - FLXS has a P/S ratio of 0.45, which is comparable to the industry average of 0.46, showing it is competitively priced based on sales [6]. - The P/CF ratio for FLXS is 9.72, which is also lower than the industry average of 14.33, suggesting strong cash flow relative to its market value [7]. Earnings Outlook - The overall data suggests that Flexsteel Industries is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [8].

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 0-5151 ______________________________________ FLEXSTEEL INDUSTRIES, INC. (Exact Name of Registrant as Specified in Its Charter) Incorporated in the State of Minnesota 42-0442319 (State or other Jurisdiction of (I.R.S. Identification No.) Incorporation or Organization) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ______________ ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), whic ...

Flexsteel Industries (FLXS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investor ...

Financial Data and Key Metrics Changes - The company reported a sales growth of 8.2% compared to the prior-year quarter, with sales orders reaching $111.5 million, reflecting a growth of $12.2 million or 12.3% [5][9] - Gross margin improved to 21.7% in the quarter compared to 18.8% in the prior-year quarter, driven by cost savings, operational execution, pricing discipline, and product portfolio management [70] - GAAP operating income was $3.0 million or 2.8% of sales, while adjusted operating income was projected to be between 5.2% to 6.0% of net sales [82][30] Business Line Data and Key Metrics Changes - The core business showed growth, with over $7 million of the $8.2 million growth attributed to growth initiatives, while there was still over 1% growth in the core market [14] - The company launched multiple new collections under the Charisma brand aimed at younger consumers, which were well received [106] - The case goods segment was down substantially, but new product introductions are expected to drive future growth [95] Market Data and Key Metrics Changes - The order backlog at the end of the third quarter was $61.5 million, reflecting a growth of $6.5 million over the previous quarter [49] - E-commerce sales in the homestyles brand were down double digits, mirroring external market conditions [95][100] - The company experienced a 29% increase in customer appointments at the recent High Point Market, indicating strong interest in its products [26] Company Strategy and Development Direction - The company is focused on expanding its market presence and gaining share in both core and new markets, with plans for continued investment in innovation and customer experience [8][12] - The strategic initiatives include expanding the Flex collection and enhancing modularity to appeal to younger consumers [7] - The company aims to position its brands across various sales channels, including big box and e-tail, to enhance long-term growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining growth momentum despite macroeconomic challenges, with expectations for continued share gains and profitability [12][5] - The company anticipates a challenging business environment in the near term but remains focused on profitable growth [5] - Management highlighted the importance of operational efficiency and cost savings as key drivers for future profitability [68] Other Important Information - The company plans to pay down debt and prioritize dividends while considering potential acquisitions that align with its strategy [17] - Capital expenditures for the fourth quarter are expected to be between $0.2 million and $0.4 million [11] - The effective tax rate for fiscal 2024 is projected to be in the range of 30% to 32% [31] Q&A Session Summary Question: What drove the outperformance in topline growth? - The growth was attributed to both core business performance and successful growth initiatives like big box expansions and the Zecliner product line [86] Question: How does the margin profile differ across sales channels? - Management believes that all channels should have a similar margin profile in the long term, although there may be short-term differences [88] Question: What are the opportunities for reducing SG&A? - The company has taken actions to materially reduce SG&A going into next year, focusing on organizational structure and talent [41] Question: How is the case goods business performing? - The case goods segment is currently down but is expected to improve with new product introductions and a fresh lineup showcased at the High Point market [95][44] Question: What is the outlook for e-commerce sales? - E-commerce sales have been down double digits year-over-year, reflecting broader market trends [100][95]