NYSE$HVT

Haverty Furniture Companies Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported an increase in sales and key financial metrics compared to the same period last year.

Havertys reported a strong third quarter with significant increases in sales and EPS. Sales rose by 3.9%, and EPS increased to $0.97 compared to $0.31 in the same period last year. The company benefited from a surge in demand for home furnishings, though it faced supply chain challenges.

  • EPS increased to $0.97 compared to $0.31 in the same period last year.
  • Sales rose by 3.9% and comparable store sales increased 4.0%.
  • Gross profit margins increased to 56.2% from 53.5% in the same period of 2019.
  • SG&A expenses decreased by $4.1 million compared to the same period in 2019.

Headline financials

Total Revenue

$218M

Previous: $209M+3.9%
EPS (adj)

$0.97

Previous: $0.31+212.9%
Gross Profit Margin

56.2%

Previous: 53.5%+5.0%
Total Written Sales Growth

22.8%

No prior period
Capital Expenditures

-$7.21M

Previous: -$12.4M+42.1%
Free Cash Flow

$11.1M

Previous: -$6.35M+274.1%
Net Income

$18.3M

Previous: $6.1M+199.5%
Operating Income

$26.9M

Previous: $7.9M+240.2%
Gross Profit

$122M

Previous: $112M+9.1%
Cash & Equivalents

$212M

Previous: $89.5M+136.6%
Total Assets

$699M

Previous: $579M+20.9%

Revenue & EPS history

Haverty Furniture · Revenue · Quarterly

$218M

Q3 2020+3.9%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Havertys expects gross profit margins for the fourth quarter of 2020 to be comparable to the third quarter of 2020. The company estimates fixed and discretionary type SG&A expenses for the fourth quarter of 2020 to be in the $67.0 to $69.0 million range.

Tailwinds

  • Gross profit margins are expected to be comparable to the third quarter 2020 level.
  • Variable type costs within SG&A are expected to decrease to 17.8% compared to 18.2% in the same period of 2019.
  • Expects to open a location in Myrtle Beach, SC in early March 2021.
  • Company has resources to capitalize on the changing retail landscape.
  • Vendor relationships and system capabilities provide a competitive advantage.

Headwinds

  • Surge in demand and impact of coronavirus on production has generated supply chain challenges.
  • Cannot predict the duration of this dynamic business shift or its long-term impact on our industry.
  • Potential problems with inventory availability.
  • Volatility or higher cost of product and international freight due to the high demand of products and low supply.
  • Disruptions in third-party producers’ operations in foreign countries.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.3%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+15.5%

Q2 2020

Best reaction

-18.9%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.3%+4.9%+11.4%
Q4 2025+2.1%-5.9%-15.6%
Q3 2025+7.8%+11.1%+17.7%
Q1 2025+8.7%+3.8%+15.4%
Q4 2024+9.1%+8.3%-1.6%
Q3 2024-8.8%-9.9%-2.8%
Q2 2024+3.4%-2.4%-4.2%
Q1 2024-7.4%-4.3%-7.8%
Q4 2023-6.8%-3.3%-9.1%
Q3 2023+6.6%+14.2%+23.6%
Q2 2023-7.9%-5.6%-12.1%
Q1 2023-13.8%-12.8%-12.8%
Q4 2022+1.7%+3.8%-15.5%
Q3 2022+4.1%+16.5%+18.5%
Q2 2022+4.7%+5.2%-3.7%
Q1 2022+8.7%+9.5%+11.0%
Q4 2021-2.6%-4.2%+5.8%
Q3 2021-9.6%-4.4%-1.7%
Q2 2021-5.2%-6.3%-6.0%
Q1 2021+13.2%+13.1%+13.1%
Q4 2020+1.0%+5.7%+14.4%
Q3 2020+7.7%+10.7%+20.1%
Q2 2020+15.5%+23.1%+38.7%
Q1 2020+4.5%+8.8%+7.5%
Q4 2019-15.0%-14.2%-38.9%
Q3 2019-14.5%-12.2%-5.2%
Q2 2019-1.9%-3.2%+5.5%
Q1 2019-18.9%-19.3%-25.8%
Q4 2018+5.9%+6.7%+4.5%
Q3 2018-0.2%+4.2%+6.8%
Q2 2018+3.8%+5.8%+10.3%
Q1 2018+9.1%+7.2%+10.2%
Q4 2017-5.1%+0.0%-11.2%
Q3 2017+4.8%+2.1%+0.6%
Q2 2017+6.8%+3.9%+0.7%
Q1 2017+3.9%+3.0%-2.8%
Q4 2016+8.6%+2.9%+4.0%
Q3 2016+3.6%+8.3%+19.3%
Q2 2016+8.9%+10.9%+8.5%
Q1 2016-3.6%
Q4 2015-2.4%
Q3 2015+3.0%
Q2 2015-0.1%
Q1 2015-1.5%
Q4 2014-6.3%
Q3 2014-4.4%
Q2 2014+0.1%
Q1 2014-3.3%
Q4 2013+1.7%
Q3 2013-3.2%
Q2 2013+1.4%
Q1 2013+1.6%
Q4 2012+0.9%
Q3 2012-1.7%
Q2 2012-0.6%
Q1 2011+0.2%
Q1 2012+1.5%
Q4 2011+1.7%
Q3 2010+3.1%
Q3 2011+3.1%
Q2 2011-6.3%
Q4 2010-3.7%
Q2 2010-1.0%
Q1 2010-2.6%

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