Haverty Furniture Companies, Inc. (NYSE:HVT): What’s The Analyst Consensus Outlook?

The latest earnings announcement Haverty Furniture Companies, Inc. (NYSE:HVT) released in December 2018 indicated that the company benefited from a strong tailwind, leading to a double-digit earnings growth of 44%. Below is my commentary, albeit very simple and high-level, on how market analysts predict Haverty Furniture Companies’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

Check out our latest analysis for Haverty Furniture Companies

Analysts’ expectations for next year seems pessimistic, with earnings falling by -1.6%. But in the following year, there is a complete contrast in performance, with reaching double digit 5.5% compared to today’s level and continues to increase to US$36m in 2022.

Although it is useful to understand the rate of growth each year relative to today’s figure, it may be more insightful to estimate the rate at which the company is rising or falling every year, on average. The advantage of this method is that we can get a bigger picture of the direction of Haverty Furniture Companies’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 5.9%. This means, we can expect Haverty Furniture Companies will grow its earnings by 5.9% every year for the next couple of years.

Next Steps:

For Haverty Furniture Companies, I’ve compiled three essential factors you should further examine:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is HVT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HVT is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of HVT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.