Jerash Holdings (US) (NASDAQ:JRSH) Issues Quarterly Earnings Results

Key Points

• Jerash beat quarterly estimates, reporting EPS of $0.16 versus the $0.08 consensus and revenue of $50.29 million versus $49.95 million expected. Fiscal Q2 revenue rose 19.8%, gross margin widened to 18.2%, and net income increased to $2.2 million.
• Production capacity is fully booked with confirmed orders through June 2027, and the company is pursuing facility and production-line expansions to increase capacity.
• For fiscal Q3, Jerash forecast revenue of $49 million–$51 million but expects gross margin to ease to 16%–17%, citing high logistics costs and temporary productivity pressures as it onboards workers.

Jerash Holdings (US) (NASDAQ:JRSH - Get Free Report) issued its earnings results on Tuesday. The company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.08 by $0.08, FiscalAI reports. Jerash Holdings (US) had a net margin of 2.77% and a return on equity of 7.61%. The company had revenue of $50.29 million for the quarter, compared to analysts' expectations of $49.95 million.

Here are the key takeaways from Jerash Holdings (US)'s conference call:

• Fiscal Q2 revenue rose 19.8% to $50.3 million, while gross margin expanded 320 basis points to 18.2%. Net income increased to $2.2 million from $479,000 a year earlier, supported by higher shipments to U.S. customers and improved operating efficiency.
• Jerash said its production capacity is fully booked with confirmed orders through June 2027, with additional demand and customer inquiries beyond that period. It also cited a 5.35 million-piece order through Hansoll and two 40,000-piece trial orders with another prospective partner, though future business depends on execution and customer demand.
• The company is pursuing several capacity additions, including an estimated 8% increase from adding lines at existing facilities and a further 15%–20% from developing its acquired facility. It is also building a satellite factory and plans to trial a second shift; some projects are expected to be completed in 2027.
• For fiscal Q3, Jerash forecast revenue of $49 million–$51 million but expects gross margin to decline to 16%–17%, citing elevated raw-material logistics costs and temporary productivity effects as new workers are onboarded. Management said transportation costs remain high despite port operations returning to near-normal levels.

Jerash Holdings (US) Price Performance

Shares of JRSH stock traded up $0.31 during trading hours on Tuesday, hitting $6.88. 146,016 shares of the company's stock were exchanged, compared to its average volume of 292,939. The stock has a market cap of $87.41 million, a price-to-earnings ratio of 17.92 and a beta of 1.03. Jerash Holdings has a 52 week low of $2.85 and a 52 week high of $7.02. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.11 and a quick ratio of 1.64. The stock's 50-day moving average is $5.85 and its 200-day moving average is $4.31.

Jerash Holdings (US) Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Monday, November 16th will be paid a $0.05 dividend. This represents a $0.20 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Monday, November 16th. Jerash Holdings (US)'s payout ratio is currently 52.63%.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on JRSH. DA Davidson lifted their price objective on shares of Jerash Holdings (US) from $5.00 to $6.00 and gave the company a "buy" rating in a report on Monday, August 10th. Weiss Ratings raised Jerash Holdings (US) from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, August 14th. Two analysts have rated the stock with a Buy rating. According to data from MarketBeat, Jerash Holdings (US) has a consensus rating of "Buy" and a consensus price target of $6.00.

Jerash Holdings (US) Company Profile

Jerash Holdings (US), Inc is an apparel manufacturer and exporter that produces garments for international customers and branded clothing companies. Its product range includes jackets, shirts, pants, activewear, outerwear and other woven and knit apparel.

The company manufactures its products through operations in Jordan, including facilities located in the Al-Hassan Industrial Estate. Its Jordanian production platform supports cutting, sewing, finishing, packaging and related garment-manufacturing activities, allowing Jerash to supply finished products to customers in global markets.

Jerash Holdings serves apparel brands and retailers primarily in North America and other international markets.

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