Investor valuing chart patterns

HOFT has more than doubled in the past 12 months

Furniture maker Hooker Furniture Corporation (NASDAQ: HOFT) will release its fourth quarter financial results on Wednesday April 14th. Looking at the latest performance in the denominational earnings report, HOFT has exceeded earnings expectations in three of its four most recent earnings reports.

For the fourth quarter of 2020, Hooker Furniture beat analysts’ estimates by a margin of $ 0.04 and reported earnings per share (EPS) of $ 0.59. For the first quarter of 2021, they reported a failure of nine cents, which fell short of expectations with a margin of $ 0.11. For the second quarter of 2021, Hooker Furniture posted earnings up to $ 0.48 per share. The company also beat estimates by $ 0.14. In its latest quarterly report, Hooker Furniture reported earnings per share of $ 0.84, beating expectations with a margin of $ 0.24.

HOFT’s last three post-profit reactions have been positive, including a 6.1% pop in December. Overall, regardless of direction, the stock has seen an average post-earnings move of 5.5% over the past eight quarters.

After trading just $ 12.47 on May 14, HOFT is now up at $ 37.02. Stocks are up 15% in 2021, with the 100-day moving average including the sharper pullbacks along the way.

Overall, despite a small market capitalization of $ 444 million, Hooker Furniture stock doesn’t offer the greatest growth potential. Revenue has declined 10% in the past 12 months and has declined 20% since fiscal 2019. The bottom line was that the losses were greater as the company lost approximately $ 29 million in net income and posted a total net loss of $ 12 million over the year last year. Hooker Furniture’s net income had already fallen more than 50% in fiscal 2020, which ended last January.

On the upside, Hooker Furniture was positive on $ 93.87 million in cash and only $ 63.45 million in debt, giving the company plenty of time and resources to recover. Hooker Furniture stock would be a more intriguing turnaround game if it hadn’t already risen that much.

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