Why Is Jerash Holdings Stock Gaining Tuesday?

Jerash Holdings Inc. (NASDAQ:JRSH) stock surged Tuesday after the apparel manufacturer reported stronger-than-expected fourth-quarter 2026 results and issued first-quarter revenue guidance that topped Wall Street estimates.

Fourth-Quarter Results Beat Expectations

Jerash reported fourth-quarter earnings of 12 cents per share, compared with the analyst consensus estimate for a loss of 1 cent.

Revenue rose to $42.9 million from $29.3 million a year earlier, exceeding the consensus estimate of $36.2 million.

The company manufactures customized sportswear and outerwear for major U.S. retailers, including Walmart Inc. and Costco Wholesale Corp.

Full-Year Revenue Reaches Record

For fiscal 2026, revenue increased 14% to a record $166.3 million from $145.8 million a year earlier.

Gross margin improved to 16.1% from 15.3%, while operating income more than quadrupled to $6.3 million from $1.4 million.

Net income was $3.6 million, or 27 cents per diluted share, compared with a net loss of approximately $840,000, or 7 cents per share, in fiscal 2025.

Outlook

For the first quarter 2027, Jerash expects revenue between $47.52 million and $48.31 million. The forecast exceeded the analyst consensus estimate of $42.3 million.

The company expects first-quarter gross margin of approximately 15% to 17%.

Chairman and CEO Sam Choi said production facilities are fully booked through December 2026. He added that the company expects to expand manufacturing capacity by about 15% by the end of calendar 2026 and complete additional expansion by mid-2027, increasing capacity by another 20% to 25%.

JRSH Price Action: Jerash shares were up 12.53% at $4.22 at the time of publication on Tuesday, according to Benzinga Pro data.

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