Flexsteel Industries Reports Huge EPS Beat (FLXS)

Flexsteel Industries Inc. FLXS reports Q2 EPS of $0.61 versus estimates of $0.23. Flexsteel Industries Inc. reports revenues of $85.6 million versus estimates of $81.18 million. Revenues increased 15% year over year. Gross margin for the year ended June 30, 2010 was 22.8% compared to 18.8% for the prior year period. The gross margin improvements for the year were greatly impacted by the operational changes. As for the company’s outlook, they said, “We enter the 2011 fiscal year with a strong balance sheet reflecting working capital in excess of $90.0 million and no bank borrowings. We had an increase in sales volume for the current quarter over the prior year quarter, and anticipate modest improvement in sales volume will continue in fiscal 2011. We believe that we have the necessary manufacturing capacity, importing capability and fixed cost controls in place to meet current and expected demand for our products. However, we are experiencing selected cost increases on various manufacturing component materials and increases on ocean freight rates in comparison to prior year rates.” Shares of FLXS are higher in the after-hours by 11.74%.