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Hooker Furnishings to Report Q3 Earnings: What's in Store for the Stock?

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Hooker Furnishings Corporation (HOFT - Free Report) is slated to report its third-quarter fiscal 2025 (ended on Oct. 27, 2024) earnings on Dec. 5, before market open.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 46.2% and decreased by more than 370% year over year. Net sales topped the consensus mark by 1.7% but declined 2.8% from the prior-year’s level.

HOFT has missed the consensus mark in three of the trailing four quarters and beat once, with an average negative surprise of 284%.

Trend in Estimate Revision

The Zacks Consensus Estimate for HOFT’s fiscal third-quarter earnings per share (EPS) has declined to 2 cents from 9 cents over the past 60 days. The estimated figure indicates a 96.9% decline from the year-ago EPS of 65 cents.

Hooker Furnishings Corp. Price and EPS Surprise

Hooker Furnishings Corp. Price and EPS Surprise

Hooker Furnishings Corp. price-eps-surprise | Hooker Furnishings Corp. Quote

The consensus mark for net sales is pegged at $99.9 million, suggesting a year-over-year decline of 14.5%.

Factors Influencing HOFT’s Performance

HOFT’s fiscal third-quarter results are expected to have been hurt significantly due to weak demand trends, higher product and under-absorbed indirect costs. Sluggish demand for home furnishings space is mainly attributable to high interest rates, subdued housing activity and other macroeconomic uncertainties.

The top line is likely to have reflected the soft performance of its Hooker Branded and Domestic Upholstery segments. Also, absence of the Accentrics Home product line, which accounted for approximately 35% of the consolidated sales in fiscal 2024, is likely to have pushed down the sales of the Home Meridian segment.

Nevertheless, the company’s strategic investments in sales channels, people, systems and products are likely to have partially aided its performance. Hooker Furnishings emphasizes strengthening its balance sheet and variable cost business model to navigate the current economic volatility until consumer confidence improves and demand normalizes.

With strategic inventory management, reasonable capital expenditures and careful expense management, Hooker Furnishings will be able to manage its financial position and foster its growth in the upcoming period.

What Our Quantitative Model Predicts for HOFT

Our proven model does not conclusively predict an earnings beat for Hooker Furnishings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: HOFT currently carries a Zacks Rank #5 (Strong Sell).

Stock Poised to Beat on Earnings

Here is a stock from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Carnival Corporation & plc (CCL - Free Report) currently sports a Zacks Rank #1 and has an Earnings ESP of +17.45%.

CCL’s earnings topped the consensus mark in the last four quarters, the average being 318.1%. Earnings for the to-be-reported quarter are expected to rise 200% year over year.

Key Picks

Flexsteel Industries, Inc. (FLXS - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 12.7%, on average. You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for FLXS’ fiscal 2025 sales and EPS indicates an increase of 4.9% and 54%, respectively, from the year-ago levels.

La-Z-Boy Incorporated (LZB - Free Report) currently carries a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 9.6%, on average.

The Zacks Consensus Estimate for LZB’s fiscal 2025 sales and EPS indicates an increase of 2.4% and 0.3%, respectively, from the year-ago levels.

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