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What's in Store for Hooker Furnishings (HOFT) in Q4 Earnings?
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Hooker Furnishings Corporation (HOFT - Free Report) is slated to report its fourth-quarter fiscal 2024 (ended on Jan 28, 2024) earnings on Apr 11, before market open.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 150% and increased 54.8% year over year.
Net sales topped the consensus mark by 0.5% but decreased 22.9% from the prior-year’s level.
Trend in Estimate Revision
The Zacks Consensus Estimate for HOFT’s fiscal fourth-quarter earnings has declined to 10 cents per share for 36 cents over the past 30 days. The estimated figure indicates a 23.1% decline from the year-ago earnings of 13 cents per share.
The consensus mark for net sales is pegged at $99.7 million, suggesting a year-over-year decline of 24.1%.
Factors to Note
Hooker Furnishings’ net sales and earnings are likely to have declined in the fiscal fourth quarter. The company has been witnessing soft demand for home furnishings, as well as the negative impact of its exit from the Accentrics Home product line.
The company expects flat sales for higher-priced Hooker Legacy brands year over year. Also, the current downturn in the furniture retail business is likely to have suppressed sales growth at Home Meridian (HMI) through the fourth quarter.
Nonetheless, improvement in the Hooker Branded and HMI segments’ bottom line is likely to have contributed to some extent, thanks to a significant decrease in product costs driven by lower ocean freight rates. Also, reduced warehousing costs owing to lower demurrage and drayage expenses, as well as lower labor and compensation expenses due to reduced shipping activities, are added positives.
The company’s strategy to reposition the HMI segment from a volatile, high-risk model with unpredictable profitability to a lower risk, more sustainable business is commendable.
What Our Quantitative Model Predicts
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 +26.32%. 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).
Stocks Poised to Beat on Earnings
Here are some stocks 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.
WYNN is expected to register a 382.8% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 108.9%.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +28.40% and carries a Zacks Rank of 3.
MGM’s earnings for the to-be-reported quarter are expected to increase 29.6%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 271.5%.
Royal Caribbean Cruises, Ltd. (RCL - Free Report) currently has an Earnings ESP of +4.76% and sports a Zacks Rank of 1.
RCL’s earnings for the to-be-reported quarter are expected to increase 665.2.%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 26.4%.
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What's in Store for Hooker Furnishings (HOFT) in Q4 Earnings?
Hooker Furnishings Corporation (HOFT - Free Report) is slated to report its fourth-quarter fiscal 2024 (ended on Jan 28, 2024) earnings on Apr 11, before market open.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 150% and increased 54.8% year over year.
Net sales topped the consensus mark by 0.5% but decreased 22.9% from the prior-year’s level.
Trend in Estimate Revision
The Zacks Consensus Estimate for HOFT’s fiscal fourth-quarter earnings has declined to 10 cents per share for 36 cents over the past 30 days. The estimated figure indicates a 23.1% decline from the year-ago earnings of 13 cents per share.
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 $99.7 million, suggesting a year-over-year decline of 24.1%.
Factors to Note
Hooker Furnishings’ net sales and earnings are likely to have declined in the fiscal fourth quarter. The company has been witnessing soft demand for home furnishings, as well as the negative impact of its exit from the Accentrics Home product line.
The company expects flat sales for higher-priced Hooker Legacy brands year over year. Also, the current downturn in the furniture retail business is likely to have suppressed sales growth at Home Meridian (HMI) through the fourth quarter.
Nonetheless, improvement in the Hooker Branded and HMI segments’ bottom line is likely to have contributed to some extent, thanks to a significant decrease in product costs driven by lower ocean freight rates. Also, reduced warehousing costs owing to lower demurrage and drayage expenses, as well as lower labor and compensation expenses due to reduced shipping activities, are added positives.
The company’s strategy to reposition the HMI segment from a volatile, high-risk model with unpredictable profitability to a lower risk, more sustainable business is commendable.
What Our Quantitative Model Predicts
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 +26.32%. 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).
Stocks Poised to Beat on Earnings
Here are some stocks 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.
Wynn Resorts Ltd. (WYNN - Free Report) has an Earnings ESP of +4.23% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
WYNN is expected to register a 382.8% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 108.9%.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +28.40% and carries a Zacks Rank of 3.
MGM’s earnings for the to-be-reported quarter are expected to increase 29.6%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 271.5%.
Royal Caribbean Cruises, Ltd. (RCL - Free Report) currently has an Earnings ESP of +4.76% and sports a Zacks Rank of 1.
RCL’s earnings for the to-be-reported quarter are expected to increase 665.2.%. It reported better-than-expected earnings in the trailing four quarters, the average surprise being 26.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.