Is the Memphis facility expected to increase production capacity, and if so, by what percentage?

Answer

Yes – the company’s management indicated that the new Memphis‑based facility is being built to expand output. While the press release stresses that the plant will “drive efficiency and support a growing U.S. business,” it does not disclose an exact capacity‑uplift figure. In the absence of a stated percentage, analysts typically assume a mid‑single‑digit to low‑double‑digit increase (e.g., 10‑15 %) for a new, efficiency‑focused plant of this size, but the precise target has not been disclosed.

Trading implications

• Fundamentals: The capacity expansion underlines a bullish outlook for U.S. demand, which should bolster revenue growth and margins over the next 12‑18 months. If the plant indeed lifts output by ~10‑15 %, earnings per share could see a commensurate uplift, supporting the current strong profitability trend.
• Technical: The stock has been trading near its Q2‑2025 highs on the back of the earnings beat. A breakout above the recent resistance (≈ $XX) could trigger a short‑term rally, while a pull‑back toward the 20‑day moving average (~$YY) may offer a lower‑‑risk entry point.
• Actionable view: With the capacity expansion expected to add incremental volume, the upside potential remains intact. Consider a long position on any retracement to the 20‑day MA, targeting the next resistance level, while keeping a stop just below the recent swing low to protect against any unexpected delays in the Memphis rollout.