Furniture Brands International Earnings: Here’s Why the Stock is Falling 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 10.09%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Furniture Brands International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.38 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Decreased 11.33% to $254.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Furniture Brands International Inc. reported adjusted EPS loss of $0.38 per share. By that measure, the company missed the mean analyst estimate of $-0.02. It missed the average revenue estimate of $290.27 million.

Quoting Management: Mr. Ralph Scozzafava, Chairman and CEO stated, “While this was a difficult quarter in what was a volatile environment, we are aggressively addressing the issues. We are well underway on implementing our transformation plan to restore positive EBITDA and free cash flow generation. Most notably, we made significant progress in revamping our stationary line at Lane and introduced a new line of motion upholstery at Broyhill. In addition, the continued transition of our product line and marketing at Thomasville saw strong response as evidenced by a 6% increase in first quarter written sales in our Thomasville company-owned stores. We also made progress with our supply chain network efficiency program as we are currently consolidating our Mt. Airy facility into our Longview plant. Finally, we continued our overall cost containment efforts and have identified further opportunities for meaningful reductions.”

Key Stats (on next page)…

Revenue decreased 3.5% from $263.95 million in the previous quarter. EPS decreased to $-0.38 in the quarter versus EPS of $-0.26 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 $0.04 to a loss $0.11. For the current year, the average estimate has moved down from a loss of $0.46 to a loss of $0.58 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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