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With 28% Earnings Growth, Did Haverty Furniture Companies, Inc. (NYSE:HVT) Outperform The Industry?

Simply Wall St

Examining Haverty Furniture Companies, Inc.'s (NYSE:HVT) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess HVT's latest performance announced on 30 June 2019 and weight these figures against its longer term trend and industry movements.

Check out our latest analysis for Haverty Furniture Companies

Did HVT's recent earnings growth beat the long-term trend and the industry?

HVT's trailing twelve-month earnings (from 30 June 2019) of US$27m has jumped 28% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.4%, indicating the rate at which HVT is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is only a result of an industry uplift, or if Haverty Furniture Companies has seen some company-specific growth.

NYSE:HVT Income Statement, September 3rd 2019
NYSE:HVT Income Statement, September 3rd 2019

In terms of returns from investment, Haverty Furniture Companies has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. Furthermore, its return on assets (ROA) of 4.9% is below the US Specialty Retail industry of 5.5%, indicating Haverty Furniture Companies's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Haverty Furniture Companies’s debt level, has declined over the past 3 years from 12% to 8.2%.

What does this mean?

Haverty Furniture Companies's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Haverty Furniture Companies to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for HVT’s future growth? Take a look at our free research report of analyst consensus for HVT’s outlook.

  2. Financial Health: Are HVT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.