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Bassett (BSET) to Report Q1 Earnings: What's in the Store?

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Bassett Furniture Industries, Incorporated’s (BSET - Free Report) first-quarter fiscal 2023 earnings and revenues are expected to have decreased on a year-over-year basis, thanks to raw material inflation and supply chain woes. Also, price drops from various suppliers are concerning the company.

In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 117.9% and increased 24.4% from the year-ago quarter. Net sales topped the consensus mark by 9.8% and increased 5.8% from the prior-year’s level.

Earnings surpassed the consensus mark in each of the trailing five quarters.

Trend in Estimate Revision

The Zacks Consensus Estimate for Bassett’s fiscal first-quarter earnings has declined to 18 cents per share from 25 cents over the past 30 days. The estimated figure indicates a 59.1% decline from the year-ago earnings of 44 cents per share. The consensus mark for revenues is $105.47 million, suggesting a 10.5% year-over-year fall.

 

Factors to Note

Bassett’s business is expected to have witnessed lackluster sales performance in first-quarter fiscal 2023 owing to existing supply-related issues, inflationary pressure, order flow and work schedule-related risks. Although the company introduced several price increases to avoid the increased cost of raw materials and freight, supplier-related price escalation is putting pressure on the bottom line.

BSET has been investing in upgrades to the plant and equipment in its manufacturing footprint to provide a better work environment for the associates and improve efficiency. The company has been formulating a new warehousing and logistics architecture that will help improve services. Also, its digital transformation program and in-store retail experience have been encouraging.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Bassett 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: BSET currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some better-ranked stocks in the Zacks Consumer Discretionary sector are Las Vegas Sands Corp. (LVS - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Crocs, Inc. (CROX - Free Report) .

Las Vegas Sands sports a Zacks Rank #1. LVS has a long-term earnings growth rate of 2.5%.

The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 108.4% and 217.5%, respectively, from the year-ago period’s estimated levels.

Hilton Grand Vacations currently sports a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 12.1%, on average.

The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates a rise of 7.1% and 10.8%, respectively, from the year-ago period’s levels.

Crocs carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 21.8%, on average.

The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.5% and 2.5%, respectively, from the year-ago period’s levels.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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