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FGI Industries Q3 revenue falls amid weak housing demand

By Reuters News


Overview

  • Kitchen and bath supplier's Q3 revenue fell 11.6% yr/yr amid weak housing demand

  • Gross margin rose to 27.6% from 26.5% a year earlier


Outlook

  • Company lowers 2026 adjusted operating income forecast to $(1.8)-0.2 mln from $0.7-2.5 mln

  • FGI Industries expects 2026 adjusted net loss of $(2.6)-(1.0) mln, down from prior $(0.3)-1.1 mln


Result Drivers

  • SOFT DEMAND - Co said continued softness in housing and remodeling activity, reduced customer purchasing, and delayed projects weighed on demand across several product categories

  • GROSS MARGIN IMPROVEMENT - Gross margin rose due to product mix management and ongoing cost discipline


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$31.70 mln

$37.20 mln (2 Analysts)

Q3 Adjusted Loss Per Share

Miss

$0.36

$0.03 (1 Analyst)

Q3 Adjusted Net Loss

Miss

$700,000

$57,000 (1 Analyst)

Q3 Gross Margin

27.60%

Q3 Adjusted Operating Income

Miss

-$500,000

$404,500 (2 Analysts)

Q3 Gross Profit

$8.70 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the home improvement products & services retailers peer group is "buy"

  • Wall Street's median 12-month price target for FGI Industries Ltd. is $10.00, about 26.1% above its November 11 closing price of $7.93

  • The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago


Reuters Recommended Reads

  • Nov 12 - US labor market resilient; existing home sales hit more than 16-year low in October

  • Nov 10 - Janus International posts surprise drop in Q3 revenue; cuts forecast

  • Nov 12 - Outdoor products maker Yeti misses Q3 sales estimates; cuts FY forecast


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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