Haverty Furniture Companies, Inc. Just Recorded A 80% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Haverty Furniture Companies, Inc. (NYSE:HVT) had a good week, as its shares rose 5.1% to close at US$29.24 following the release of its second-quarter results. Revenues of US$179m fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of US$0.27 an impressive 80% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Haverty Furniture Companies

Following the recent earnings report, the consensus from three analysts covering Haverty Furniture Companies is for revenues of US$763.8m in 2024. This implies a small 3.8% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to crater 35% to US$1.57 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$782.0m and earnings per share (EPS) of US$1.35 in 2024. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the solid gain to to the earnings per share numbers.

There's been no real change to the average price target of US$36.33, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Haverty Furniture Companies at US$45.00 per share, while the most bearish prices it at US$29.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.4% by the end of 2024. This indicates a significant reduction from annual growth of 4.0% 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 4.8% per year. It's pretty clear that Haverty Furniture Companies' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Haverty Furniture Companies following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at US$36.33, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Haverty Furniture Companies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Haverty Furniture Companies going out to 2025, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Haverty Furniture Companies .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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