Upgrade: Analysts Just Made A Sizeable Increase To Their Hooker Furniture Corporation (NASDAQ:HOFT) Forecasts
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. The market may be pricing in some blue sky too, with the share price gaining 15% to US$41.15 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the latest consensus from Hooker Furniture's lone analyst is for revenues of US$694m in 2022, which would reflect a notable 16% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 25% to US$3.58. Before this latest update, the analyst had been forecasting revenues of US$621m and earnings per share (EPS) of US$2.80 in 2022. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.
See our latest analysis for Hooker Furniture
It will come as no surprise to learn that the analyst has increased their price target for Hooker Furniture 11% to US$51.00 on the back of these upgrades.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hooker Furniture's past performance and to peers in the same industry. The analyst is definitely expecting Hooker Furniture's growth to accelerate, with the forecast 22% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hooker Furniture is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Hooker Furniture.
Better yet, our automated discounted cash flow calculation (DCF) suggests Hooker Furniture could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.
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.
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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