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Interested In Hooker Furniture Corporation (NASDAQ:HOFT)? Here's What Its Recent Performance Looks Like

Simply Wall St

Assessing Hooker Furniture Corporation's (NASDAQ:HOFT) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess HOFT's latest performance announced on 05 May 2019 and evaluate these figures to its historical trend and industry movements.

View our latest analysis for Hooker Furniture

How Did HOFT's Recent Performance Stack Up Against Its Past?

HOFT's trailing twelve-month earnings (from 05 May 2019) of US$35m has jumped 13% compared to the previous year.

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 27%, indicating the rate at which HOFT is growing has slowed down. Why could this be happening? Well, let's look at what's occurring with margins and whether the entire industry is feeling the heat.

NasdaqGS:HOFT Income Statement, August 6th 2019

In terms of returns from investment, Hooker Furniture has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 9.0% exceeds the US Consumer Durables industry of 7.1%, indicating Hooker Furniture has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Hooker Furniture’s debt level, has increased over the past 3 years from 10% to 13%.

What does this mean?

Hooker Furniture's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Hooker Furniture gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Hooker Furniture to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for HOFT’s future growth? Take a look at our free research report of analyst consensus for HOFT’s outlook.
  2. Financial Health: Are HOFT’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 05 May 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.