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Bassett (BSET) to Report Q2 Earnings: What's in the Offing?

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Bassett Furniture Industries, Incorporated’s (BSET - Free Report) second-quarter fiscal 2024 earnings and revenues are expected to have decreased on a year-over-year basis owing to a difficult sales environment for home furnishings.

In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 1500% and declined 187.5% year over year. Net sales lagged the consensus mark by 5.4% and decreased 19.6% from the prior-year’s level.

Earnings surpassed the consensus mark in three of the trailing four quarters and missed on one occasion with an average of negative 112.7%.

Trend in Estimate Revision

The Zacks Consensus Estimate for Bassett’s fiscal second-quarter loss per share has widened to 12 cents from 10 cents over the past 60 days. The estimated figure indicates a 180% decline from the year-ago earnings per share of 15 cents.

The consensus mark for revenues is $86.22 million, suggesting a year-over-year decline of 14.2%.

Factors to Note

Bassett’s business is expected to have witnessed lackluster sales and earnings performance in the second quarter of fiscal 2024. The company has been witnessing lower wholesale and retail shipments.

BSET has been investing in plant and equipment upgrades in its manufacturing footprint to provide a better work environment for the associates and improve efficiency. The company has been formulating a new warehousing and logistics architecture that will help improve services. Its digital transformation program and in-store retail experience have been encouraging.

Meanwhile, the company expects to see improvement in the overall margins, backed by expense reduction strategies.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Bassett 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 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: BSET currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks from the Zacks Consumer Discretionary sector:

La-Z-Boy Incorporated (LZB - Free Report) presently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 15.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for LZB’s fiscal 2025 EPS indicates an improvement of 5% from the prior-year levels. The estimated figure moved up to $3.13 from $2.80 over the past 30 days.

SharkNinja Inc. (SN - Free Report) presently flaunts a Zacks Rank #1. It has a trailing three-quarter earnings surprise of 12.2%, on average.

The consensus estimate for SN’s 2024 EPS indicates an improvement of 18.6% from the prior-year levels. The estimated figure moved up to $3.82 from $3.54 over the past 60 days.

Interface, Inc. (TILE - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 64%, on average.

The consensus estimate for TILE’s 2024 EPS indicates an improvement of 18% from the prior-year levels. The estimated figure moved up to $1.18 from $1.05 over the past 60 days.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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