Bassett (BSET) to Post Q3 Earnings: What's in the Offing?
Bassett Furniture Industries, Incorporated BSET is set to release its third-quarter fiscal 2023 (ended Aug 26, 2023) results on Sep 28, 2023, before market open.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by a whopping 650% but declined 81.5% from the year-ago quarter. Net sales missed the consensus mark by 2.1% and decreased by 21.9% from the prior year’s level.
Earnings surpassed the consensus mark in six of the trailing seven quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for Bassett’s fiscal third-quarter loss has declined to 59 cents per share from earnings of 12 cents over the past 30 days. The estimated figure indicates a 170.2% decline from the year-ago earnings of 84 cents per share. The consensus mark for revenues is $86.95 million, suggesting a 26.3% year-over-year decrease.
Factors to Note
Bassett’s earnings and revenues are expected to have decreased in fiscal third quarter, thanks to raw material inflation. Price drops from various suppliers concern the company.
BSET’s business is expected to have witnessed lackluster sales performance in third-quarter fiscal 2023 owing to existing suppliers’ 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.
Recently, the company announced certain preliminary results for fiscal third quarter. Net sales for the to-be-reported quarter were approximately $87 million, down 26% from third-quarter fiscal 2022. Wholesale shipments dropped by 27% and orders fell by 5% year over year.
It expects to report an operating and net loss for the same period. BSET estimates to report positive operating cash flow and more than $65 million of cash and short-term investment balance.
BSET has been investing in plant and equipment upgrades in its manufacturing footprint to provide a better work environment for associates and improve efficiency. The company has been formulating a new warehousing and logistics architecture that will help improve services. 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 #3.
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:
Royal Caribbean Cruises Ltd. RCL currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 28.5%, on average.
The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests growth of 55.3% and 181.9%, respectively, from the year-ago period’s levels.
Hilton Worldwide Holdings Inc. HLT carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 12.5%, on average.
The Zacks Consensus Estimate for HLT’s 2023 sales and EPS suggests increases of 14.8% and 23.7%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited OSW currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 42.6%, on average.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates growth of 44.5% and 117.9%, respectively, from the year-ago period’s levels.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
