Flexsteel Industries Inc. shares surged 11% in after-hours trading on Tuesday after the furniture manufacturer reported better-than-expected fourth-quarter results and raised its fiscal 2025 guidance.
The company posted adjusted earnings per share of $0.85, exceeding the $0.70 estimate from Refinitiv. Revenue totaled $152.3 million, up 5.2% year-over-year and ahead of the $148.1 million consensus. Gross margin expanded to 29.7%, compared with 27.4% in the same period last year, reflecting improved pricing and operational efficiencies.
For fiscal 2025, Flexsteel raised its revenue guidance to a range of $600 million to $620 million, up from the prior forecast of $580 million to $600 million. Adjusted EPS guidance was increased to $3.20-$3.40 from $3.00-$3.20. Analysts had anticipated revenue of $595 million and EPS of $3.10.
Chief Executive Officer Jerry Volenee cited stronger demand in residential furniture markets and cost discipline as key drivers of the outperformance. "Our focus on product innovation and operational excellence continues to yield results," Volenee said in a statement.
Flexsteel’s shares, which closed at $22.45 in regular trading, climbed to $24.90 in extended hours following the release. The stock has gained roughly 28% over the past 12 months, outperforming the S&P 500 Homebuilding Index, which is up 12% over the same period.
Analysts at B. Riley Securities reiterated a Buy rating on the stock, citing the improved outlook and margin expansion. The company will hold an earnings call on Wednesday to discuss the results in detail.
The furniture maker has benefited from a rebound in housing market activity and consumer spending on home furnishings, trends that have supported broader gains in the sector this year.
