Superior Group of Companies (NASDAQ:SGC) Announces Earnings Results, Beats Estimates By $0.11 EPS

Superior Group of Companies (NASDAQ:SGC) released its earnings results on Tuesday. The textile maker reported $0.21 EPS for the quarter, topping the consensus estimate 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 firm had revenue of $147.84 million during 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 Up 10.5%

NASDAQ:SGC traded up $1.36 during midday trading on Tuesday, hitting $14.28. 20,643 shares of the company were exchanged, compared to its average volume of 43,260. Superior Group of Companies has a fifty-two week low of $8.30 and a fifty-two week high of $14.59. The company has a market capitalization of $223.20 million, a PE ratio of 25.05, a price-to-earnings-growth ratio of 2.02 and a beta of 1.45. The company has a current ratio of 2.73, a quick ratio of 1.76 and a debt-to-equity ratio of 0.42. The company has a fifty day simple moving average of $12.99 and a 200 day simple moving average of $11.43.

Hedge Funds Weigh In On Superior Group of Companies

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

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Wall Street Zen upgraded Superior Group of Companies from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 9th. Weiss Ratings upgraded shares of Superior Group of Companies from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, June 1st. Finally, DA Davidson raised their target price on shares of Superior Group of Companies from $14.00 to $15.00 and gave the company a “buy” rating in a 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. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $15.50.

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.