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The analysts might have been a bit too bullish on Ethan Allen Interiors Inc. (NYSE:ETD), given that the company fell short of expectations when it released its quarterly results last week. Ethan Allen Interiors missed earnings this time around, with US$143m revenue coming in 2.8% below what the analysts had modelled. Statutory earnings per share (EPS) of US$0.37 also fell short of expectations by 20%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ethan Allen Interiors after the latest results.
Following last week's earnings report, Ethan Allen Interiors' dual analysts are forecasting 2026 revenues to be US$612.4m, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 12% to US$2.00 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$643.2m and earnings per share (EPS) of US$2.60 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
See our latest analysis for Ethan Allen Interiors
It'll come as no surprise then, to learn that the analysts have cut their price target 6.3% to US$30.00.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.4% by the end of 2026. This indicates a significant reduction from annual growth of 1.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.4% annually for the foreseeable future. It's pretty clear that Ethan Allen Interiors' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Ethan Allen Interiors' future valuation.