Earnings Miss: Hooker Furniture Corporation Missed EPS And Analysts Are Revising Their Forecasts
The first-quarter results for Hooker Furniture Corporation (NASDAQ:HOFT) were released last week, making it a good time to revisit its performance. Revenues came in at US$105m, in line with estimates, while Hooker Furniture reported a statutory loss of US$0.09 per share, well short of prior analyst forecasts for a profit. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Check out our latest analysis for Hooker Furniture
Taking into account the latest results, Hooker Furniture's lone analyst currently expect revenues in 2021 to be US$584.7m, approximately in line with the last 12 months. Per-share statutory losses are expected to see a sharp uptick, reaching US$1.47. Before this earnings report, the analyst had been forecasting revenues of US$576.6m and earnings per share (EPS) of US$1.35 in 2021. While the analyst has made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.
Despite expectations of heavier losses next year,the analyst has lifted their price target 24% to US$26.00, perhaps implying these losses are not expected to be recurring over the long term.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Hooker Furniture's revenue growth is expected to slow, with forecast 0.8% increase next year well below the historical 17%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hooker Furniture is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analyst is expecting Hooker Furniture to become unprofitable next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Hooker Furniture. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Hooker Furniture .
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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