As the Dow and Nasdaq both tumbled more than a percent Thursday, one stock in particular stood out among the crowd for its green-hued stock price: home furnisher Ethan Allen
In and of itself, that seems strange. But wait -- the mystery deepens. Just three weeks ago, rival furniture maker Hooker Furniture
Perhaps it's because not everyone has been doing badly, even in this apparently lousy year for sofa-selling. Bassett
They may well be proven right. According to analysts tracking the stock, Ethan Allen is expected to post revenues of about $237 million for its third quarter, and profits of $0.54 per diluted share. For its part, Ethan Allen agrees, terming analysts' predicted earnings range of $0.53 to $0.56 "reasonable and achievable."
Just don't be shocked when the numbers that Ethan Allen actually produces on Monday seem to fall far short of those estimates. In a Sept.12 press release, Ethan Allen CEO Farooq Kathwari pointed out that the analyst estimates do not account for an expected one-time restructuring charge that the company will take in its third quarter. That charge, likely between $0.07 and $0.09 per share, will result in the company showing a decline in net income against the $0.51 profit that Ethan Allen reported one year ago.
One final note, aimed especially at Foolish investors. Like all too many public companies, Ethan Allen doesn't provide a cash flow statement with its earnings releases. It does, however, provide the information you'd most likely seek on that document. Come Monday, scroll down past the prose portion of the earnings release, and seek out a chart labeled " Selected Consolidated Financial Data." That's where you'll find the "cash from operations" (which Ethan Allen terms "operating cash flow") and "capital expenditures" numbers needed to calculate free cash flow.
For more on Ethan Allen, pull up a chair and read:
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