Supreme Industries, Inc. (NYSEMKT: STS) Surprises Shareholders With 2Q and 1H Results


Supreme Industries, Inc. (NYSEMKT: STS) said that it had a successful 2Q2016 and 1H2016. Revenue and earnings improved in both periods and the management reported an uptick in backlog. As an investor, it is important to keep a close eye on how the key metrics in the latest periods changed relative to the year-ago periods.

Sales in 2Q2016

Supreme Industries, Inc. (NYSEMKT: STS) reported that its consolidated net sales rose 12.4% YoY to $92.9 million. The sales improvement in the quarter was driven by strong demand, especially for medium-duty work trucks. According to CEO Mark Weber, the management remains focused on driving organic growth opportunities, a statement that implies that investors should expect to see sustained sales growth in the coming quarters and years. But the management didn’t provide any solid revenue guidance for the current or future quarters.

Coming to the bottom-line, Supreme Industries posted a whopping 91% uptick in net income, which translated to EPS of $0.48. If you compare the EPS figure for the latest quarter period and the same period a year-ago, you see that EPS rose 84.6%.

CEO Weber added that the growth posted in 2Q2016 exceeded the industry expansion, which suggests that Supreme Industries is growing at a more rapid clip than most of its peers.

Cost curtailment

Supreme Industries, Inc. (NYSEMKT: STS) is also winning war against runaway costs. The company reported that its gross margin in 2Q rose to 24.1% from 18.7%. SG&A expenses also decreased as a percentage of sales to 10.7% compared to 11.2% in the same period a year ago.

Supreme Industries finished 2Q with backlog amounting to $75.5 million, up from $74 million in backlog in the comparable quarter a year ago.

1H2016 performance for Supreme Industries, Inc. (NYSEMKT: STS)

Supreme Industries, Inc. (NYSEMKT: STS) also reported performance for 1H2016, saying that consolidated net sales rose 11.3% to $162.3 million and EPS rose to $0.70 from $0.37 in the same period in 2015.


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