With so many people putting their money under mattresses during the deep economic recession, you'd think that a company like Culp, Inc. (CFI) might prosper. But no, this mattress and upholstery fabrics marketer took its lumps with everyone else.
Nevertheless, its fiscal fourth-quarter report from earlier this month was very strong, and its earnings estimates have been moving in the right direction.
And now, Culp finished Monday's session as the top-performing Zacks #1 Rank with shares that gained approximately 11.8%. Volume was north of 162,000 shares, compared to the daily average of a little more than 102,000.
The Zacks Consensus Estimate for this fiscal year, ending April 2012, is $1.01 per share. There has been a 1% improvement over the past 30 days, and a nearly 10% improvement in the past 2 months.
For the fiscal year ending April 2013, the Zacks Consensus Estimate of $1.10 per share suggests year-over-year improvement of practically 9%. There has been a slight, one-cent improvement in the past 30 days, which comes to almost 1%. However, over the past 2 months, the guidance has advanced by around 7%.
There are 2 total estimates for this fiscal year and next fiscal year each.
The fiscal fourth quarter contained earnings per share that beat the Zacks Consensus Estimate by as much as 40%. Meanwhile, net sales increased 5.5% to $60.4 million.
The company also authorized up to $5 million for the repurchase of shares.
CFI said that its fiscal 2011 results show that it is successfully navigating through a challenging period. It expects fiscal first quarter sales to advance 1% to 5% from the previous year.
Culp is one of the world's largest marketers of mattress fabrics for bedding and upholstery fabrics for furniture. Its fabrics are used principally in the production of bedding products and residential and commercial upholstered furniture.
It is one of only 2 companies from the textile products industry on today's Zacks #1 Rank List. The other name is Albany International Corp. (AIN - Free Report) .
Not far behind Culp was NN, Inc. (NNBR - Free Report) , which gained 8.4% on Monday to take a lofty position on the Zacks #1 Rank Top Performers List.
NN manufactures and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of markets on a global basis.
It is one of four companies from the metal processors & fabricators industry on today's Zacks #1 Rank List. The other 3 companies from that space are Mueller Industries, Inc. (MLI - Free Report) , The Timken Company (TKR - Free Report) and TriMas Corporation (TRS - Free Report) .
NNBR has experienced no earnings estimate revisions in the past 30 days, but expectations have moved sharply higher in the past 2 months. The Zacks Consensus Estimate for 2011 is $1.60 per share, marking a gain of 10.3% in 60 days.
The Zacks Consensus Estimate for 2012 is $1.88 per share, suggesting an improvement of 17.5% from the previous year. This guidance has moved forward by 14% in 2 months.
The spark in earnings estimates centered around its first-quarter results from early May. Earnings per share of 33 cents surpassed the Zacks Consensus Estimate of 10%. Net sales increased 30.4% to $111.3 million from $85.3 million, thanks to strong customer demand for its products.