Jerash Holdings Q1 revenue surges 27% to record on shipments to key U.S. customers and Korean partner
Jerash Holdings Q1 revenue surges 27% to record on shipments to key U.S. customers and Korean partner
Overview
U.S. sportswear manufacturer's fiscal Q1 revenue rose 27% yr/yr to record high
Net income advanced more than fivefold compared to prior year quarter
Revenue growth driven by higher shipments to major U.S. customers and Korean partner
Outlook
Jerash expects fiscal Q2 revenue of $49 mln-$51 mln, subject to logistics amid geopolitical uncertainties
Company targets fiscal Q2 gross margin of 14-15% due to increased transportation costs for raw materials
Company says Middle East geopolitical developments could affect near-term export logistics and costs
Result Drivers
HIGHER U.S. SHIPMENTS - Increased shipments to two major U.S. customers drove revenue growth, per company
STRONGER MARGINS - Higher shipment volumes to U.S. customers and efficiency gains from automation improved gross margin, per company
FAVORABLE TRADE CONDITIONS - Duty-free access for Jordanian apparel exports to U.S. strengthened competitive position and supports future growth, per CEO Sam Choi
Company press release: ID:nACS8H4Rqa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $50.20 mln | $47.90 mln (2 Analysts) |
Q1 Gross Profit |
| $8.30 mln |
|
Q1 Operating Expenses |
| $5.60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the textiles & leather goods peer group is "buy"
Wall Street's median 12-month price target for Jerash Holdings (US) Inc is $6.00, about 20% above its August 7 closing price of $5.00
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Aug 7 - Under Armour forecasts steeper annual sales decline on weak North America demand
Aug 8 - Gas crisis makes Bangladesh textiles sector rethink energy sources
Aug 7 - Early surge in US container imports coming to an end, shippers say
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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