Furniture Brands International Earnings: Here’s Why Investors are Selling Shares Now

Furniture Brands International Inc. (NYSE:FBN) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 20.57%.

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Furniture Brands International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.41 in the quarter versus EPS of $-0.17 in the year-earlier quarter.

Revenue: Rose 3.31% to $264 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Furniture Brands International Inc. reported adjusted EPS loss of $-0.41 per share. By that measure, the company missed the mean analyst estimate of $-0.24. It beat the average revenue estimate of $256.23 million.

Quoting Management: Mr. Ralph Scozzafava, Chairman and CEO stated, “Fourth quarter sales increased 3%, however much work remains to be done in order to make progress driving profitable sales growth. In 2012 we ramped up production in our Mexico and Indonesia facilities and started our Broyhill casegoods mixing program, all of which will enable us to reduce our costs and participate more in the high-volume, lower-price point segments of the market. We also increased our mix of transitional and updated product to broaden our style appeal, and we improved service to our dealers with our Broyhill casegoods mixing program and Lane and Broyhill quickship programs.”

Key Stats (on next page)…

Revenue increased 3.27% from $255.64 million in the previous quarter. EPS decreased to $-0.41 in the quarter versus EPS of $-0.33 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.05 and has not changed. For the current year, the average estimate has moved up from a loss of $0.71 to a loss of $0.69 over the last ninety days.

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