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What to Expect Ahead of Hooker Furnishings' Q2 Earnings Release

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Hooker Furnishings Corporation (HOFT - Free Report) is set to report its second-quarter fiscal 2025 (ended July 28, 2024) results on Sep. 5, before market open.

In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 1,200% while the net sales surpassed the same by 3.3%.

HOFT’s Trend in Estimate Revision

The Zacks Consensus Estimate for fiscal second-quarter loss per share has remained unchanged at 5 cents over the past 60 days. The estimated figure indicates a 171.4% decline from the year-ago quarter’s figure.

Hooker Furnishings Corp. Price and EPS Surprise

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 $96 million, indicating a year-over-year decline of 1.8%.

Factors to Ascertain HOFT’s Quarterly Earnings

Hooker Furnishings’ top line is expected to have declined year over year because of lower demand trends for home furnishings, reflecting the soft performance of its Hooker Branded, Home Meridian and Domestic Upholstery segments. The divestment of the Accentrics Home product line in the prior fiscal year is likely to have pushed down the sales of the Home Meridian segment.

The ongoing market uncertainties, including the sluggish housing market, ongoing inflation and lower home furnishings spending, are anticipated to have been concerning for HOFT’s growth trends.

Nevertheless, the company’s strategic investments in sales channels, people, systems and products are likely to have partially aided its performance. Hooker Furnishings emphasizes strengthening its balance sheet and variable cost business model to navigate the current economic volatility until consumer confidence improves and demand normalizes.

The bottom line of HOFT is expected to have declined year over year due to increased costs and expense structures across its reportable segments. Furthermore, unfavorable customer and product mix in the Home Meridian segment and under-absorbed costs in the Domestic Upholstery segment due to lower production and sales are likely to have put pressure on the margins.

With strategic inventory management, reasonable capital expenditures and careful expense management, Hooker Furnishings will be likely to manage its financial position and foster its growth in the upcoming period.

What the Zacks 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: HOFT has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Consumer Discretionary Releases

PENN Entertainment, Inc. (PENN - Free Report) reported a narrower-than-expected loss second-quarter 2024. The company’s bottom and top lines surpassed the Zacks Consensus Estimate but declined on a year-over-year basis. PENN's quarterly results were hampered by disappointing performances of its South and Interactive segments.

However, top-of-funnel growth improvement, better risk management and enhanced promotional strategies led to stronger-than-expected revenues and adjusted EBITDA in the Interactive segment. It continues to focus on database growth and enhancing engagement through the latest technology, ongoing investments in gaming and non-gaming areas, and partnerships in food and beverage.

Choice Hotels International, Inc. (CHH - Free Report) delivered lower-than-expected second-quarter 2024 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. However, both metrics increased on a year-over-year basis.

The results were backed by strong demand trends across the company’s diversified portfolio of brands. This uptrend in demand aided in accelerating global hotel openings, expanding international market reach and increasing the size of its reward program. CHH’s versatile business model and accretive growth strategies ensure the support required to foster its growth trends.

Hilton Worldwide Holdings Inc. (HLT - Free Report) reported second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Both metrics increased year over year.

The company's performance was backed by notable improvements in revenue per available room, attributed to higher occupancy rates and average daily rates. As of June 30, 2024, Hilton's development pipeline comprised nearly 3,370 hotels, with almost 508,300 rooms across 136 countries and territories. For 2024, HLT expects net unit growth to be in the range of 7-7.5%.

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

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