Delta Apparel, Inc.DLA is an international design, marketing, manufacturing, and sourcing company that features a diverse portfolio of lifestyle basic and branded activewear apparel, headwear and related accessories.
Delta Apparel has been posting decent results over the past few quarters on the back of its strategic initiatives to boost sales as well as margins. However, challenging operating environment, macroeconomic uncertainty and unfavorable inventory level may pose problems for the company. Given these factors, investors were eagerly waiting for the company’s latest earnings report.
This is especially true given the recent earnings estimate revisions for DLA as the consensus estimate has remained unchanged over the past 30 days. Further, DLA has an impressive earnings history. DLA has delivered positive earnings surprise in three of the last four quarters, with negative surprise in the remaining one quarter, making for an average positive surprise of 32.56%.
Currently, DLA has a Zacks Rank #5 (Strong Sell). You can seethe complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. The Zacks Rank could definitely change following Delta Apparel’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: DLA posted adjusted earnings of 40 cents per share, beating our consensus of 38 cents per share. Investors should note that these figures take out stock option expenses.
Revenue:DLA posted revenues of $114.4 million, in-line with our consensus estimate.
Key Stats to Note:Adjusted gross margins expanded in both the company’s basics and branded segments. The company achieved gross margin expansion throughout fiscal year 2016 and anticipates this trend to continue in fiscal year 2017, as the benefits from the completed manufacturing realignment are realized.
Stock Price:In-active in pre-market trading.
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