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Haverty (HVT) to Report Q3 Earnings: What's in the Offing?

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Haverty Furniture Companies, Inc. (HVT - Free Report) is set to report third-quarter 2021 results on Oct 28, after the market closes.

In the last reported quarter, the company’s earnings and sales surpassed the Zacks Consensus Estimate by 83.3% and 19.7%, respectively. On a year-over-year basis, earnings and sales increased 132.7% and 127.3%, respectively.

Haverty's earnings topped the consensus mark in each of the last four quarters, with the average being 85.2%.

Trend in Estimate Revision

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has increased 3.1% to $1.34 per share over the past 60 days. The estimated figure indicates 38.1% growth from the year-ago earnings of 97 cents per share. The consensus mark for revenues is $263.2 million, suggesting 21% year-over-year growth.

Factors to Note

The company’s earnings in the third quarter are expected to have witnessed a strong improvement on a year-over-year basis, courtesy of solid pricing disciplines and cost-control measures. The strong desire for homeownership among buyers and Haverty’s solid positioning in Florida, Texas, and the Southeast are likely to have boosted top-line performance. The company’s efforts toward market share gains in the existing distribution footprint and maintaining a double-digit operating margin must have added to the positives.

Yet, shipping challenges experienced by housing-related industries have been causing major furniture delays. Also, higher freight and product costs have been putting pressure on margins.

Preliminary Q3 Results

On Sep 20, the company provided business updates for third-quarter sales and comparable store sales performance. Management cited that its sales for the third quarter to date grew more than 21% year over year. Also, comps improved 19.5% year over year in the same time frame. The Written business was up 2.7% and comps written business grew 1% year over year so far in the third quarter. Management also cited that merchandise availability and supply chain disruptions remain concerns for the company.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Haverty 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 has a Zacks Rank #4 (Sell) 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-Wholesale sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.

The Cheesecake Factory Incorporated (CAKE - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank #3.

Five Below, Inc. (FIVE - Free Report) has an Earnings ESP of +3.90% and a Zacks Rank #3.

Wingstop Inc. (WING - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #3.