Culp, Inc. (NASDAQ:CULP) shares surged 18.62% to $4.14 after the bell on Wednesday after the company topped Wall Street estimates in its fiscal first-quarter 2027 results.
The North Carolina-based bedding and upholstery fabric maker reported results for the quarter ended Aug. 2.
Revenue Tops Estimates Despite Shorter Quarter
Culp posted consolidated net sales of $53.97 million, edging past the analyst estimate of $53.24 million by 1.38%. Revenue climbed 6.5% year-over-year, even with one fewer selling week in the quarter.
Earnings per share came in at $0.47, beating the $0.44 estimate by 6.82%.
Net income totaled $6 million, boosted by one-time International Emergency Economic Powers Act tariff recoveries tied to previously incurred costs.
The company also cut net debt more than 70% to $3.1 million, ending the quarter with $29.4 million in total liquidity.
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CEO Iv Culp said, “We are pleased with our first quarter results, namely our ability to increase sales and margins and to exceed our profitability expectations irrespective of the one-time tariff recoveries.”
He added that the results reflect the company’s successful execution of its restructuring and integration strategy over the past two years, even amid continued pressure across the home furnishings market.
For the second quarter, Culp expects sequential sales volumes to hold steady with modest year-over-year growth, and forecasts break-even operating income along with accelerating adjusted EBITDA.
Trading Metrics, Technical Analysis
Culp has a market capitalization of approximately $44.39 million. Its stock has traded between a 52-week high of $4.80 and a 52-week low of $2.70.
CULP has a Relative Strength Index (RSI) of 55.90.
Over the past 12 months, the small-cap stock has fallen 25.74%.
CULP is currently trading around 37.6% of the way through its 52-week range.
Price Action: In the regular session, the stock closed at $3.49, up 2.05%, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings indicate that Culp stock is experiencing medium-term upward movement along with long and short-term consolidation.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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