Hooker Furnishings (HOFT) to Post Q1 Earnings: What's Up?
Hooker Furnishings Corporation HOFT is slated to report its first-quarter fiscal 2025 (ended on Apr 28, 2024) earnings on Jun 6, before market open.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 40% but improved from a loss of $1.60 per share in the year-ago quarter.
Net sales missed the consensus mark by 2.9% and declined 26.3% from the prior-year’s level.
Trend in Estimate Revision
The Zacks Consensus Estimate is pegged at a loss of 3 cents per share. In the prior-year quarter, HOFT generated earnings per share (EPS) of 13 cents. The estimated figure has moved south from an EPS of 2 cents over the past 30 days.
Hooker Furnishings Corp. Price and EPS Surprise
Hooker Furnishings Corp. price-eps-surprise | Hooker Furnishings Corp. Quote
The consensus mark for net sales is pegged at $94.94 million, suggesting a year-over-year decline of 22.1%.
Factors to Note
Hooker Furnishings’ business is expected to have dismal net sales and EPS in the fiscal first quarter, owing to an industry-wide soft demand for home furnishings and the negative impact of its exit from the Accentrics Home product line.
In spite of encouraging signs such as easing inflation and likely interest rate cuts, consumer confidence has ticked down recently. During the fourth quarter fiscal 2024 earnings call, the company mentioned being two and half months into the new fiscal first quarter with down mid-single digits in terms of orders. Also, the company entered the to-be-reported quarter with lower backlogs.
HOFT’s strategic investments in sales channels, people, systems, and products are likely to have aided the company’s performance in the to-be-reported quarter. The company emphasizes strengthening its robust balance sheet and variable cost model to navigate the current economic volatility until consumer confidence improves and demand normalizes.
Improvement in the Hooker Branded and HMI segments’ bottom line is likely to have contributed to some extent, thanks to new product introduction and lower ocean freight rates. The company’s strategy to reposition the HMI segment from a volatile, high-risk model with unpredictable profitability to a lower-risk, more sustainable business is commendable.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Hooker Furnishings 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 -60.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: HOFT currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat on Earnings
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Hyatt Hotels Corporation H has an Earnings ESP of +2.19% and a Zacks Rank of 3 at present.
H is expected to register a 17.1% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, with earnings surprise of 20.3%, on average.
DraftKings Inc. DKNG currently has an Earnings ESP of +8.27% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 111.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, with a negative surprise of 58.3% on average.
OneSpaWorld Holdings Limited OSW currently has an Earnings ESP of +2.56% and a Zacks Rank of 2.
OSW’s earnings for the to-be-reported quarter are expected to increase 33.3%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 4.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hyatt Hotels Corporation (H) : Free Stock Analysis Report
Hooker Furnishings Corp. (HOFT) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
