Jerash Holdings (JRSH) stock jumped more than 12% on Tuesday after the apparel manufacturer delivered a fourth-quarter earnings surprise that left analysts in the dust.

The company, which makes customized sportswear and outerwear for retail giants like Walmart and Costco, reported earnings of $0.12 per share for the quarter ended March 31. That compares with the consensus estimate for a loss of $0.01 per share — a swing of $0.13 that shows just how much the company outperformed expectations.

Revenue came in at $42.9 million, up from $29.3 million a year ago and well above the $36.2 million analysts had penciled in. The company attributed the growth to strong demand from its U.S. retail partners.

For the full fiscal year 2026, revenue rose 14% to a record $166.3 million, up from $145.8 million in fiscal 2025. Gross margin improved to 16.1% from 15.3%, and operating income more than quadrupled to $6.3 million from $1.4 million. Net income was $3.6 million, or $0.27 per diluted share, compared with a net loss of about $840,000, or $0.07 per share, in the prior year.

Looking ahead, Jerash guided first-quarter 2027 revenue between $47.52 million and $48.31 million, well above the $42.3 million analysts were expecting. The company also forecast gross margin of approximately 15% to 17% for the quarter.

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%.

At the time of publication Tuesday, Jerash shares were up 12.53% at $4.22, according to market data.