Omega Flex Stock Rises 8% Despite Q4 Earnings Falling Y/Y

Shares of Omega Flex, Inc. (OFLX Quick QuoteOFLX – Free Report) have gained 7.7% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 2.2% growth over the same time frame. Over the past month, the stock has declined 1.1% compared with the S&P 500’s 4.7% decline.

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Omega Flex reported fourth-quarter 2024 earnings per share (EPS) of 46 cents, down from 48 cents in the year-ago period.

Net sales totaled $27 million, down 4.2% from $28.1 million in the prior-year quarter. The company attributed the revenue decline primarily to lower sales unit volumes, which were impacted by a slowdown in housing starts.

For the fourth quarter, net income fell 4.2% year over year to $4.7 million from $4.9 million.

Other Key Business Metrics of OFLX

Omega Flex’s profit decline was largely influenced by higher operating costs. The company cited increased salary-related expenses and higher travel costs as contributing factors.

Management Commentary and Market Conditions for OFLX

CEO Dean W. Rivest noted that the company faced challenges stemming from a suppressed market environment, particularly due to declining housing starts. This has negatively impacted demand for Omega Flex’s flexible metal hose and gas piping products. Management did not specify any major strategic shifts but acknowledged that market headwinds persisted throughout 2024.

OFLX’s Dividend Declaration

On Dec. 5, 2024, Omega Flex’s board of directors declared a regular quarterly dividend of 34 cents per share, payable on Jan. 7, 2025, to shareholders of record as of Dec. 19, 2024. The company emphasized that future dividend levels will be determined based on financial performance, capital expenditure plans, and potential acquisition opportunities.

Full-Year Update for OFLX

Net sales of $101.7 million for 2024 marked an 8.8% decline from $111.5 million in 2023. Net income came in at $18 million, a 13.2% decrease from $20.8 million in 2023. EPS declined accordingly, with full-year EPS at $1.78, down from $2.06 in 2023.