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In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 12.5% and 2.6%, respectively. On a year-over-year basis, earnings and revenues grew 43.2% and 23.6%, respectively.
Its earnings surpassed the consensus mark in eight of the trailing nine quarters and missed on one occasion.
Trend in Estimate Revision
The Zacks Consensus Estimate for Ethan Allen’s fiscal second-quarter earnings has remained unchanged at 76 cents per share over the past 60 days. The estimated figure indicates a 30.9% decline from the year-ago earnings of $1.10 per share.
The consensus mark for revenues stands at $179.2 million, suggesting an 11.8% year-over-year decline.
Factors to Note
Ethan Allen is expected to witness lackluster earnings and revenue performance for the second quarter of fiscal 2024, thanks to lower demand for both segments due to a slower economy. Also, fixed cost deleveraging, along with the expenses incurred with the launch of the Interior Design Destination initiative and other costs, is likely to have ailed the bottom line in the to-be-reported quarter.
The company expects retail sales to decline year over year in the fiscal second quarter. The Zacks Consensus Estimate for Retail net sales of $146 million indicates a fall from $172 million reported in the year-ago period. The same for Wholesale net sales is $100 million, suggesting a decline from $106 million reported a year ago.
Nonetheless, the company expects an improvement in written orders in the quarter to be reported on the back of a timing shift.
That said, a strong brand presence, robust product offerings and increased digital marketing are likely to have aided ETD. Also, the advantages of vertical integration, including its North American manufacturing, interior design-focused retail network, strong logistics network and healthy balance sheet, are likely to have added to the positives.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ethan Allen for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Ethan Allen 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: It currently carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat for the quarter to be reported:
The Zacks Consensus Estimate for DRI’s to-be-reported quarter’s sales and EPS suggests a rise of 9.1% and 12.8%, respectively, from the year-ago period’s levels.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank #2.
The Zacks Consensus Estimate for PLAY’s to-be-reported quarter’s sales and EPS indicates a rise of 8.5% and 45%, respectively, from the year-ago period’s levels.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #2.
The Zacks Consensus Estimate for CMG’s to-be-reported quarter’s sales and EPS suggests a rise of 14.1% and 16.3%, respectively, from the year-ago period’s levels.
Image: Bigstock
Ethan Allen (ETD) to Post Lackluster Q2 Earnings: Here's Why
Ethan Allen Interiors Inc. (ETD - Free Report) is slated to report its second-quarter fiscal 2024 results on Jan 24, after the closing bell.
In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 12.5% and 2.6%, respectively. On a year-over-year basis, earnings and revenues grew 43.2% and 23.6%, respectively.
Its earnings surpassed the consensus mark in eight of the trailing nine quarters and missed on one occasion.
Trend in Estimate Revision
The Zacks Consensus Estimate for Ethan Allen’s fiscal second-quarter earnings has remained unchanged at 76 cents per share over the past 60 days. The estimated figure indicates a 30.9% decline from the year-ago earnings of $1.10 per share.
Ethan Allen Interiors Inc. Price and EPS Surprise
Ethan Allen Interiors Inc. price-eps-surprise | Ethan Allen Interiors Inc. Quote
The consensus mark for revenues stands at $179.2 million, suggesting an 11.8% year-over-year decline.
Factors to Note
Ethan Allen is expected to witness lackluster earnings and revenue performance for the second quarter of fiscal 2024, thanks to lower demand for both segments due to a slower economy. Also, fixed cost deleveraging, along with the expenses incurred with the launch of the Interior Design Destination initiative and other costs, is likely to have ailed the bottom line in the to-be-reported quarter.
The company expects retail sales to decline year over year in the fiscal second quarter. The Zacks Consensus Estimate for Retail net sales of $146 million indicates a fall from $172 million reported in the year-ago period. The same for Wholesale net sales is $100 million, suggesting a decline from $106 million reported a year ago.
Nonetheless, the company expects an improvement in written orders in the quarter to be reported on the back of a timing shift.
That said, a strong brand presence, robust product offerings and increased digital marketing are likely to have aided ETD. Also, the advantages of vertical integration, including its North American manufacturing, interior design-focused retail network, strong logistics network and healthy balance sheet, are likely to have added to the positives.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ethan Allen for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Ethan Allen 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: It currently carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat for the quarter to be reported:
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +0.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DRI’s to-be-reported quarter’s sales and EPS suggests a rise of 9.1% and 12.8%, respectively, from the year-ago period’s levels.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank #2.
The Zacks Consensus Estimate for PLAY’s to-be-reported quarter’s sales and EPS indicates a rise of 8.5% and 45%, respectively, from the year-ago period’s levels.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #2.
The Zacks Consensus Estimate for CMG’s to-be-reported quarter’s sales and EPS suggests a rise of 14.1% and 16.3%, respectively, from the year-ago period’s levels.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.