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Superior Group shares jump on Q4 earnings, revenue beat

EditorRachael Rajan
Published 03/14/2024, 04:52 AM
© Reuters.

ST. PETERSBURG, Fla. - Superior Group of Companies, Inc. (NASDAQ:SGC) reported a notable fourth quarter performance, surpassing Wall Street's expectations for both earnings and revenue.

The company's earnings per share (EPS) for the quarter were $0.22, exceeding the analyst estimate of $0.15. Revenue also outperformed consensus estimates, coming in at $147.2 million against an expected $142.86 million.

This positive earnings surprise prompted a 2.96% increase in the company's stock.

The company's net sales saw a slight decrease of 0.9% compared to the fourth quarter of the previous year, which recorded $148.6 million. Despite the dip in sales, net income rose to $3.6 million from $2.2 million in the prior year's fourth quarter. Adjusted net income for the quarter also showed a significant improvement, turning around from a net loss of $0.9 million or -$0.06 per diluted share in the previous year to a net income of $3.6 million or $0.22 per diluted share.

CEO Michael Benstock commented on the results, stating, "We capped off 2023 with our best quarter of the year, delivering sequential improvement, stronger profitability and continued positive cash flow along with a substantially improved balance sheet." He attributed the success to underlying fundamentals moving in the right direction, strong retention, and new client wins. Benstock expressed optimism for the company's performance and market share growth in 2024.

Looking ahead, Superior Group provided its full-year outlook for 2024, forecasting sales to range between $558 million and $568 million, up from 2023 sales of $543 million. The company's EPS guidance for the year is set at $0.61 to $0.68. However, this forecast falls short of the analyst consensus of $0.77 EPS, while the revenue guidance's midpoint is slightly below the consensus estimate of $567 million.

Superior Group's fourth quarter results and its outlook for the coming year reflect a company that is navigating the competitive landscape with a strategic focus on growth and profitability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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