Superior Group of Companies (NASDAQ:SGC) Posts Quarterly Earnings Results

Key Points

• Superior Group of Companies exceeded quarterly expectations: Revenue rose 3% to $147.84 million, while EPS of $0.21 more than doubled analysts’ consensus estimate of $0.10.
• Branded Products and Contact Centers drove improvement, but Healthcare Apparel remained a headwind due to lower revenue, a $2.6 million inventory write-down and weaker segment EBITDA.
• Full-year 2026 guidance was maintained at $572 million–$585 million in revenue and $0.54–$0.66 in adjusted diluted EPS; analysts hold a “Moderate Buy” consensus with an average price target of $15.50.

Superior Group of Companies (NASDAQ:SGC - Get Free Report) posted its earnings results on Tuesday. The textile maker reported $0.21 EPS for the quarter, topping analysts' consensus estimates of $0.10 by $0.11, FiscalAI reports. Superior Group of Companies had a return on equity of 4.45% and a net margin of 1.51%.The business had revenue of $147.84 million for the quarter, compared to analysts' expectations of $142.87 million. Superior Group of Companies updated its FY 2026 guidance to 0.540-0.660 EPS.

Here are the key takeaways from Superior Group of Companies' conference call:

• Second-quarter results improved materially: revenue rose 3% to $148 million, EBITDA increased 27% to $7.7 million, and adjusted diluted EPS more than doubled to $0.21.
• Branded Products continued to lead growth, with revenue up 6% on higher volumes from existing customers, gross margin expanding to 36.5%, and EBITDA rising 25%; management also cited a strong pipeline extending into 2027.
• Healthcare Apparel remained a significant drag, with revenue down 4%, gross margin pressured by a $2.6 million non-cash inventory write-down, and segment EBITDA declining by $1 million; management expects additional, though lesser, margin pressure in the second half before improvement in 2027.
• Contact Centers showed sequential recovery for the second consecutive quarter, supported by new customer conversions, additional agents, cost efficiencies, and a larger pipeline; management expects continued sequential revenue and EBITDA-margin improvement in the back half.
• The company maintained its full-year 2026 outlook for revenue of $572 million to $585 million and adjusted diluted EPS of $0.54 to $0.66, while noting that results are expected to be back-half weighted and that Healthcare Apparel’s transition creates execution variability.

Superior Group of Companies Stock Performance

NASDAQ:SGC opened at $12.92 on Tuesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.73 and a quick ratio of 1.76. The firm has a market cap of $201.94 million, a price-to-earnings ratio of 22.67, a price-to-earnings-growth ratio of 2.02 and a beta of 1.45. The firm's fifty day moving average price is $12.99 and its 200 day moving average price is $11.43. Superior Group of Companies has a 1-year low of $8.30 and a 1-year high of $14.59.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on SGC shares. Weiss Ratings upgraded shares of Superior Group of Companies from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, June 1st. Wall Street Zen upgraded shares of Superior Group of Companies from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 9th. Finally, DA Davidson raised their price objective on shares of Superior Group of Companies from $14.00 to $15.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $15.50.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in SGC. Hsbc Holdings PLC lifted its holdings in shares of Superior Group of Companies by 26.4% in the 4th quarter. Hsbc Holdings PLC now owns 33,151 shares of the textile maker's stock valued at $324,000 after buying an additional 6,934 shares during the period. Millennium Management LLC purchased a new stake in shares of Superior Group of Companies in the fourth quarter valued at approximately $250,000. Russell Investments Group Ltd. grew its holdings in Superior Group of Companies by 23.2% during the fourth quarter. Russell Investments Group Ltd. now owns 5,252 shares of the textile maker's stock worth $51,000 after acquiring an additional 989 shares during the period. Rothschild Wealth LLC acquired a new position in Superior Group of Companies during the fourth quarter worth $504,000. Finally, Squarepoint Ops LLC raised its position in Superior Group of Companies by 69.3% in the fourth quarter. Squarepoint Ops LLC now owns 31,496 shares of the textile maker's stock worth $305,000 after acquiring an additional 12,888 shares in the last quarter. 33.75% of the stock is owned by hedge funds and other institutional investors.

Superior Group of Companies Company Profile

Superior Group of Companies is a global developer and manufacturer of specialty packaging materials, including films, laminations and pressure-sensitive adhesives. Founded in 1969 and headquartered in Santa Fe Springs, California, the company combines advanced printing technologies with materials science expertise to deliver customized packaging solutions for industries such as food and beverage, healthcare, personal care and household products.

Through a network of manufacturing and distribution facilities across North America, Europe and Asia, Superior Group serves both multinational brand owners and regional producers.

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