Jerash expects fiscal Q2 revenue of $49 million-$51 million, subject to logistics amid geopolitical uncertainties.
The company targets fiscal Q2 gross margin of 14%-15% due to increased transportation costs for raw materials.
Middle East geopolitical developments could affect near-term export logistics and costs, the company said.
Key figures and analyst view
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$50.20 million
$47.90 million (2 analysts)
Q1 Gross Profit
$8.30 million
Q1 Operating Expenses
$5.60 million
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", with no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the textiles and leather goods peer group is .
Wall Street's median 12-month price target for Jerash Holdings (US) Inc is $6.00, about 20% above its August 7 closing price of $5.00.
The stock recently traded at 12 times the next 12-month earnings versus a P/E of 11 three months ago.
Quarterly results and revenue drivers
U.S. sportswear manufacturer's fiscal Q1 revenue rose 27% year over year to a record high.
Net income advanced more than fivefold compared with the prior-year quarter.
Revenue growth was driven by higher shipments to major U.S. customers and a Korean partner.
Management comments on margins and trade conditions
Higher shipments to two major U.S. customers drove revenue growth, according to the company.
Higher shipment volumes to U.S. customers and efficiency gains from automation improved gross margin, the company said.
Duty-free access for Jordanian apparel exports to the U.S. strengthened the company's competitive position and supports future growth, according to CEO Sam Choi.
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