Ethan Allen Interiors Inc. ( ETH Quick Quote ETH - Free Report) is scheduled to report third quarter of fiscal 2021 results on Apr 29, after the closing bell. In the last reported quarter, the company’s top and bottom lines matched the Zacks Consensus Estimate but improved 2.4% and 155.6% year over year, respectively. Its earnings surpassed the consensus mark in three of the trailing six quarters. Trend in Estimate Revision
The Zacks Consensus Estimate for Ethan Allen’s fiscal third-quarter earnings is pegged at 58 cents per share, implying significant growth of 2,800% on a year-over-year basis. The consensus estimate for revenues is $177 million, indicating an 18.2% year-over-year increase.
Factors to Note
Ethan Allen’s interior designing business is likely to generate improved results for the fiscal third quarter backed by favourable market conditions post the easing of COVID-19 disruptions. The company has been witnessing strong pace of written orders. Also, its manufacturing facilities have been ramping up production to meet demand after temporary plant closures in fourth quarter of fiscal 2020.
Notably, its self-operated design centers and North American retail network have witnessed significant growth in recent times. Also, the e-commerce business is expected to have provided some support to the top line. Moreover, a resilient housing market scenario, and solid repair & remodeling activities are expected to have benefited the company’s performance in the fiscal third quarter. However, Ethan Allen believes that it will take the next few quarters to catch up to the increase in customer demand. A Glimpse of Fiscal Third-Quarter Preliminary Results
During the fiscal third quarter, the company recorded a 51.8% year-over-year increase in written orders in the retail division, including ecommerce. The same metric grew 39% in the Wholesale segment. Excluding General Services Administration and other government orders, wholesale segment orders grew 48.3% from the prior-year quarter. Net delivered sales of $177 million also increased 18.2% year over year.
Its projects adjusted earnings within 56-58 cents per share, indicating a massive improvement from 2 cents a year ago. The potential growth in the bottom line is expected to have been primarily backed by solid cost-containment measures. Zacks Projections
The Zacks Consensus Estimate for Retail segment sales is pegged at $131 million, implying an improvement of 12.9% from the year-ago period. The same for Wholesale segment sales is pegged at $108 million, suggesting 16.1% year-over-year growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ethan Allen 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. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Currently, it sports a Zacks Rank #1 and an Earnings ESP of 0.00%. You can see . the complete list of today’s Zacks #1 Rank stocks here Stocks Worth a Look
Here are some companies in the Zacks
Retail - Home Furnishings industry, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported. Williams-Sonoma, Inc. ( WSM Quick Quote WSM - Free Report) has an Earnings ESP of +2.89% and sports a Zacks Rank #1. Dillard's, Inc. ( DDS Quick Quote DDS - Free Report) has an Earnings ESP of +6.49% and sports a Zacks Rank #1. Lowe's Companies, Inc. ( LOW Quick Quote LOW - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #2. Time to Invest in Legal Marijuana
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