Ethan Allen Interiors Beats Estimates Yet Again

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.


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.


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 thisarticle 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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