Omega Flex Stock Rises 8% Despite Q4 Earnings Falling Y/Y

Core Insights - Omega Flex, Inc. (OFLX) reported a decline in earnings and sales for the fourth quarter of 2024, with EPS at 46 cents, down from 48 cents year-over-year [2] - The company's net sales for the quarter were $27 million, a decrease of 4.2$28.1 million in the prior-year quarter, attributed to lower sales unit volumes due to a slowdown in housing starts [2][4] - Full-year net sales for 2024 were $101.7 million, marking an 8.8$111.5 million in 2023, with net income falling to $18 million, a 13.2$20.8 million in 2023 [6] Financial Performance - Fourth-quarter net income fell 4.2% year-over-year to $4.7 million from$4.9 million [2] - Full-year EPS decreased to $1.78 from$2.06 in 2023 [6] - The profit decline was influenced by higher operating costs, including increased salary-related expenses and travel costs [3] Market Conditions - CEO Dean W. Rivest indicated that the company faced challenges from a suppressed market environment, particularly due to declining housing starts, which negatively impacted demand for its products [4] - Management acknowledged persistent market headwinds throughout 2024 without specifying major strategic shifts [4] Dividend Information - On December 5, 2024, the board declared a quarterly dividend of 34 cents per share, payable on January 7, 2025, to shareholders of record as of December 19, 2024 [5] - Future dividend levels will be determined based on financial performance, capital expenditure plans, and potential acquisition opportunities [5]