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

Superior Group of Companies (NASDAQ:SGC) announced its quarterly earnings data on Tuesday. The textile maker reported $0.21 earnings per share for the quarter, beating 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 analyst estimates 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 Performance

SGC stock traded down $0.17 during trading on Wednesday, reaching $13.78. 32,235 shares of the company’s stock were exchanged, compared to its average volume of 44,251. The company has a quick ratio of 1.76, a current ratio of 2.73 and a debt-to-equity ratio of 0.42. Superior Group of Companies has a 1-year low of $8.30 and a 1-year high of $14.59. The company’s fifty day moving average price is $13.03 and its 200-day moving average price is $11.45. The firm has a market cap of $215.44 million, a PE ratio of 24.18, a P/E/G ratio of 2.20 and a beta of 1.45.

Superior Group of Companies Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.56 annualized dividend and a yield of 4.1%. Superior Group of Companies’s payout ratio is presently 98.25%.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on SGC. Weiss Ratings upgraded Superior Group of Companies from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, June 1st. Wall Street Zen raised shares of Superior Group of Companies from a “buy” rating to a “strong-buy” rating in a report on Saturday, May 9th. Finally, DA Davidson set a $18.00 target price on shares of Superior Group of Companies in a research note on Tuesday. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Superior Group of Companies has a consensus rating of “Moderate Buy” and an average target price of $17.00.

Institutional Trading of Superior Group of Companies

A number of hedge funds and other institutional investors have recently made changes to their positions in SGC. Russell Investments Group Ltd. increased its stake in shares of Superior Group of Companies by 55.4% during the third quarter. Russell Investments Group Ltd. now owns 4,263 shares of the textile maker’s stock valued at $46,000 after acquiring an additional 1,520 shares during the period. Deutsche Bank AG acquired a new position in shares of Superior Group of Companies during the 4th quarter valued at $65,000. O Shaughnessy Asset Management LLC bought a new stake in shares of Superior Group of Companies in the 4th quarter worth $121,000. Bank of America Corp DE lifted its holdings in shares of Superior Group of Companies by 20.5% in the second quarter. Bank of America Corp DE now owns 14,780 shares of the textile maker’s stock valued at $152,000 after buying an additional 2,511 shares during the period. Finally, Ameriprise Financial Inc. grew its holdings in Superior Group of Companies by 6.1% during the second quarter. Ameriprise Financial Inc. now owns 17,708 shares of the textile maker’s stock worth $182,000 after acquiring an additional 1,021 shares during the period. 33.75% of the stock is currently owned by institutional investors.

Key Superior Group of Companies News

Here are the key news stories impacting Superior Group of Companies this week:

• Positive Sentiment: Q2 earnings and revenue beat estimates: SGC reported adjusted earnings of $0.21 per share, more than double the $0.10 earned a year earlier and above consensus estimates of approximately $0.09-$0.10. Revenue of $147.84 million also exceeded expectations of roughly $142.87 million. Superior Group Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Dividend supports shareholder returns: The company declared a quarterly dividend of $0.14 per share, payable August 28 to shareholders of record August 14. The payout equates to $0.56 annually and an indicated yield of approximately 4%, which may help support investor interest. Superior Group Dividend and Stock Information
• Neutral Sentiment: Full-year guidance is essentially in line with expectations: SGC forecast 2026 revenue of $572 million-$585 million and adjusted diluted EPS of $0.54-$0.66. The revenue midpoint of $578.5 million is nearly identical to consensus of $578.6 million, while the EPS midpoint of $0.60 matches the consensus estimate. Superior Group 2026 Forecast
• Negative Sentiment: Healthcare reset remains a risk: Management’s outlook reflects disruption or normalization in its healthcare-related business, potentially restraining sales growth and limiting upside despite the quarterly earnings beat. Investors may focus on whether the reset is temporary and how it affects future margins.

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.