FAIRFIELD, NJ - Jerash Holdings (US), Inc. (NASDAQ:JRSH), a manufacturer and exporter of sportswear and outerwear, has declared a regular quarterly dividend of $0.05 per share. The dividend is scheduled to be paid to shareholders of record as of November 22, 2024, with the payment date set for on or about November 29, 2024.
The company, known for its production of custom, ready-made clothing for some of the world's leading brands, operates out of six factory units and four warehouses, employing approximately 5,000 people. Jerash Holdings supplies to notable global brands and retailers, including VF Corporation (NYSE:VFC), New Balance, G-III, American Eagle (NYSE:AEO), and Skechers.
This dividend announcement reflects Jerash Holdings' commitment to providing value to its stockholders and demonstrates confidence in its financial stability. Dividends are a way for companies to distribute a portion of their earnings back to shareholders, and a consistent dividend payout can be a sign of a company's good financial health.
The decision by Jerash's board of directors to approve this dividend signals the company's ongoing efforts to maintain a regular return to its investors. It is important to note that the dividend yield and the actual return to investors will depend on the stock's market price, which can fluctuate.
This news is based on a press release statement and provides shareholders and potential investors with the latest information on Jerash Holdings' financial distributions. It is a straightforward report on the company's dividend policy without any endorsement of the company's market position or speculation about its future performance.
In other recent news, Jerash Holdings experienced a revision in its shares target, which was lowered to $3.50 from the earlier $4.00 by DA Davidson. This adjustment followed the company's first-quarter 2025 results that showed sales slightly exceeding expectations, yet profits fell short due to increased costs associated with transportation and backlogged orders. Despite these challenges, demand for Jerash's products remains robust, with manufacturing facilities operating at full capacity.
Increased costs, including higher supply chain expenses and selling, general, and administrative costs, led to an operating loss for the quarter. However, the DA Davidson analyst maintains a positive outlook for the company's revenue prospects. The new price target of $3.50 is based on a 5.0X enterprise value to earnings before interest, taxes, depreciation, and amortization multiple, calculated using DA Davidson's calendar 2025 estimates.
These developments are part of recent news surrounding Jerash Holdings, reflecting an optimistic sales outlook despite operational losses in the recent quarter.
InvestingPro Insights
Jerash Holdings' recent dividend declaration aligns with its track record of shareholder returns. According to InvestingPro data, the company currently offers a substantial dividend yield of 6.69%, which is particularly noteworthy given the current market conditions. This high yield is consistent with one of the InvestingPro Tips, which indicates that Jerash "pays a significant dividend to shareholders."
Despite the attractive dividend, investors should be aware of some financial challenges. InvestingPro Tips reveal that Jerash "suffers from weak gross profit margins" and is "not profitable over the last twelve months." This is reflected in the company's negative P/E ratio of -9.55, suggesting current earnings challenges.
On a positive note, Jerash "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company navigates its current profitability issues. Additionally, the stock "generally trades with low price volatility," which may appeal to investors seeking stability in their portfolio.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips for Jerash Holdings, providing a more comprehensive view of the company's financial health and market position.
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