Earnings Miss: Ethan Allen Interiors Inc. Missed EPS By 73% And Analysts Are Revising Their Forecasts
Ethan Allen Interiors Inc. (NYSE:ETD) just released its latest quarterly report and things are not looking great. Results showed a clear earnings miss, with US$130m revenue coming in 4.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.07 missed the mark badly, arriving some 73% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the consensus from Ethan Allen Interiors' dual analysts is for revenues of US$546.9m in 2027, which would reflect a noticeable 2.7% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to crater 38% to US$0.76 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$560.6m and earnings per share (EPS) of US$1.15 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
See our latest analysis for Ethan Allen Interiors
The consensus price target fell 8.3% to US$22.00, with the weaker earnings outlook clearly leading valuation estimates.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would also point out that the forecast 3.6% annualised revenue decline to the end of 2027 is better than the historical trend, which saw revenues shrink 7.6% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.1% annually. So while a broad number of companies are forecast to grow, unfortunately Ethan Allen Interiors is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Ethan Allen Interiors. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Ethan Allen Interiors going out as far as 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Ethan Allen Interiors that you need to be mindful of.
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