The Dixie Group Earnings: Here’s Why Investors are Exhilarated

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 22.90%.

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The Dixie Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.05 in the quarter versus EPS of $-0.01 in the year-earlier quarter.

Revenue: Rose 19.97% to $75.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Dixie Group, Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company beat the mean analyst estimate of $-0.03. It beat the average revenue estimate of $70.4 million.

Quoting Management: Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, “The first quarter typically is the slowest and most difficult quarter for our business. However, Dixie had a year-over-year sales improvement of 20% with sales growth in all areas of the business. Our sales growth in the residential business was 21% higher than the same period in the prior year with notable growth in our mass merchant area. We believe that the residential market, in contrast, grew in the low single digits. Our commercial business increased 13% with particularly strong growth in our modular carpet tile area. This increase was in comparison, we believe, to low single digit growth in the commercial market.”

Key Stats (on next page)…

Revenue increased 6% from $71.13 million in the previous quarter. EPS increased to $0.05 in the quarter versus EPS of $-0.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.01 to a profit $0.03. For the current year, the average estimate is a profit of $0.1, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)