Ethan Allen Interiors Beats Estimates Yet Again

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Ethan Allen Interiors (NYS: ETH) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Ethan Allen Interiors missed on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved, and earnings per share dropped significantly.

Gross margins improved, operating margins grew, net margins contracted.

Revenue details
Ethan Allen Interiors reported revenue of $183 million. The four analysts polled by S&P Capital IQ looked for revenue of $191 million. Sales were 5.7% higher than the prior-year quarter's $173 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.30. The five earnings estimates compiled by S&P Capital IQ averaged $0.28 per share on the same basis. GAAP EPS of $0.28 for Q2 were 45% lower than the prior-year quarter's $0.51 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.6%, 180 basis points better than the prior-year quarter. Operating margin was 7.6%, 150 basis points better than the prior-year quarter. Net margin was 4.4%, 410 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $177 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $741 million. The average EPS estimate is $0.99.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 64 members out of 118 rating the stock outperform, and 54 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Ethan Allen Interiors a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ethan Allen Interiors is hold, with an average price target of $21.50.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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