We came across a bullish thesis on Flexsteel Industries, Inc. (FLXS) on Twitter by AlphaSenseInc. In this article, we will summarize the bulls’ thesis on FLXS. Flexsteel Industries, Inc. (FLXS)’s share was trading at $31.93 as of April 21st. FLXS’s trailing and forward P/E were 8.92 and 8.92 respectively according to Yahoo Finance.
Flexsteel Industries delivered another solid performance, with net sales rising 6.3% year-over-year to $114.0 million, marking the sixth consecutive quarter of growth. This momentum was driven by a combination of new product introductions, share gains from strategic accounts, and traction in newly expanded markets. The company achieved adjusted net income of $1.13 per share, a substantial increase from $0.67 in the prior-year quarter, alongside adjusted operating income of $8.3 million, reflecting a continued focus on operational efficiency and profitability. Despite reporting a GAAP net loss per share of ($0.71), primarily due to a $14.1 million impairment charge related to a leased facility in Mexico, the underlying business fundamentals remain strong, as evidenced by an adjusted operating margin of 7.3%—the second-highest in seven years—and $12.3 million in operating cash flow, bringing the cash balance to $22.6 million. Flexsteel’s leadership emphasized their confidence in the business despite a challenging macroeconomic backdrop, including the announcement of proposed reciprocal tariffs and signs of slowing retail traffic amid declining consumer confidence. The CEO acknowledged that the U.S. economy faces heightened uncertainty, with risks of prolonged inflation and even potential recession if tariffs persist. Nonetheless, the company remains strategically agile, prepared for multiple demand scenarios, and committed to strengthening its competitive position. Management outlined two priorities: sustaining execution of proven growth strategies while prudently managing costs, and enhancing supply chain agility to mitigate tariff-related risks. They reiterated their dedication to investing in innovation, marketing, and customer experience to drive long-term value. While near-term visibility is clouded by global trade and economic uncertainties, Flexsteel is well-positioned to continue gaining market share. With strong financials, an adaptable strategy, and a clear long-term vision, the company is poised to emerge from this uncertain period even stronger.
Flexsteel Industries, Inc. (FLXS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held FLXS at the end of the fourth quarter which was 5 in the previous quarter. While we acknowledge the risk and potential of FLXS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FLXS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.