Furniture Brands International Earnings: Here’s Why Investors are Not Happy Now

Furniture Brands International Inc. (NYSE:FBN) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 25.13%.

Furniture Brands International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-5.15 in the quarter versus EPS of $-0.84 in the year-earlier quarter.

Revenue: Decreased 3.94% to $255 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Furniture Brands International Inc. reported adjusted EPS loss of $5.15 per share. By that measure, the company missed the mean analyst estimate of $-1.26. It missed the average revenue estimate of $256.05 million.

Quoting Management: Mr. Ralph Scozzafava, Chairman and CEO stated, “Our financial performance in the second quarter was below our expectations. Continued solid top and bottom line performance of our designer brands and improving sales and order trends at our Thomasville owned retail stores were once again significantly over-shadowed by the challenges we are facing in stabilizing sales and profitability in our wholesale businesses.”

Key Stats (on next page)…

Revenue increased 0.11% from $254.73 million in the previous quarter. EPS increased to $-5.15 in the quarter versus EPS of $-2.31 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.25 to a loss $1.36. For the current year, the average estimate has moved down from a loss of $0.75 to a loss of $6.11 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)