The Dixie Group Earnings: Here’s Why the Stock is Rising Now
The Dixie Group, Inc. (NASDAQ:DXYN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8%.
The Dixie Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.13 in the quarter versus EPS of $-0.03 in the year-earlier quarter.
Revenue: Rose 25.6% to $83.61 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: The Dixie Group, Inc. reported adjusted EPS income of $0.13 per share. By that measure, the company beat the mean analyst estimate of $0.04. It beat the average revenue estimate of $75 million.
Quoting Management: Daniel K. Frierson, chairman and chief executive officer, said, “The second quarter was one of strong performance both residentially and commercially. Dixie had a year-over-year sales improvement of 26% with sales growth in all areas of the business. Our sales growth in the residential business was 27% as compared to the same period a year ago. We believe the residential market grew during the quarter in the high single digits with the market strengthening as the quarter progressed. It appears that the residential carpet market is now being positively impacted by the increase in the housing sector that began in 2012. Sales for our commercial products increased 21% versus the second quarter of 2012. This increase was in comparison to the commercial market being up only slightly in our estimation.”
Key Stats (on next page)…