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Hooker Furniture Corporation's (NASDAQ:HOFT) Sole Analyst Just Made A Captivating Upgrade To Their Forecasts

Simply Wall St

Celebrations may be in order for Hooker Furniture Corporation (NASDAQ:HOFT) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the latest upgrade, Hooker Furniture's one analyst currently expects revenues in 2021 to be US$577m, approximately in line with the last 12 months. Statutory earnings per share are presumed to swell 14% to US$1.35. Previously, the analyst had been modelling revenues of US$474m and earnings per share (EPS) of US$1.03 in 2021. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Hooker Furniture

NasdaqGS:HOFT Past and Future Earnings June 14th 2020

With these upgrades, we're not surprised to see that the analyst has lifted their price target 24% to US$26.00 per share.

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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.6%, a significant reduction from annual growth of 17% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.7% next year. It's pretty clear that Hooker Furniture's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Hooker Furniture could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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. Thank you for reading.