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

Superior Group of Companies (NASDAQ:SGC) released its quarterly earnings data 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 net margin of 1.51% and a return on equity of 4.45%. The firm had revenue of $147.84 million for the quarter, compared to the consensus estimate 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 Trading Up 9.0%

Shares of 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 50 day simple moving average of $12.99 and a 200-day simple moving average of $11.43. Superior Group of Companies has a 1-year low of $8.30 and a 1-year high of $14.59. The stock 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.

Analyst Ratings Changes

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

Institutional Investors Weigh In On Superior Group of Companies

A number of large investors have recently bought and sold shares of SGC. Vanguard Group Inc. lifted its holdings in Superior Group of Companies by 2.0% in the 3rd quarter. Vanguard Group Inc. now owns 690,185 shares of the textile maker’s stock valued at $7,399,000 after purchasing an additional 13,250 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Superior Group of Companies by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 269,508 shares of the textile maker’s stock worth $2,609,000 after buying an additional 2,442 shares in the last quarter. Wells Fargo & Company MN raised its position in shares of Superior Group of Companies by 7.5% in the fourth quarter. Wells Fargo & Company MN now owns 262,591 shares of the textile maker’s stock valued at $2,542,000 after buying an additional 18,268 shares during the last quarter. Advisory Services Network LLC acquired a new position in shares of Superior Group of Companies in the third quarter valued at approximately $2,596,000. Finally, Bridgeway Capital Management LLC raised its position in shares of Superior Group of Companies by 2.3% in the third quarter. Bridgeway Capital Management LLC now owns 180,335 shares of the textile maker’s stock valued at $1,933,000 after buying an additional 4,032 shares during the last quarter. Institutional investors and hedge funds own 33.75% of the company’s stock.

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.