Ethan Allen Interiors (NYSE:ETD) Hits New 1-Year Low on Disappointing Earnings

Shares of Ethan Allen Interiors Inc. (NYSE:ETD) reached a new 52-week low during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $17.40 and last traded at $18.06, with a volume of 1,867,706 shares trading hands. The stock had previously closed at $20.34.

The company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.26 by ($0.16). The firm had revenue of $129.60 million during the quarter, compared to analyst estimates of $135.60 million. Ethan Allen Interiors had a net margin of 5.54% and a return on equity of 6.12%. Ethan Allen Interiors’s quarterly revenue was down 11.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.43 earnings per share.

Ethan Allen Interiors Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Friday, November 20th will be issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date of this dividend is Friday, November 20th. Ethan Allen Interiors’s dividend payout ratio (DPR) is currently 100.00%.

Key Headlines Impacting Ethan Allen Interiors

Here are the key news stories impacting Ethan Allen Interiors this week:

• Positive Sentiment: Ethan Allen declared a regular quarterly dividend of $0.20 per share, payable December 4 to shareholders of record November 20. The payout maintains a recurring shareholder return as the company says it will also invest in restoring growth. Dividend announcement
• Neutral Sentiment: The company announced an overhaul intended to refresh its leadership and oversight, appointing Stefanie Tsen Ward interim CEO and adding directors. Management says it plans to revitalize the brand and modernize the customer experience, but the impact will depend on execution. Leadership announcement
• Negative Sentiment: Fiscal Q1 results disappointed: earnings were $0.10 per share, below analyst estimates of about $0.25–$0.26, while revenue of $129.6 million missed expectations of $135.6 million and declined 11.8% year over year. Earnings also fell from $0.43 a year earlier. First-quarter results
• Negative Sentiment: Farooq Kathwari is leaving the CEO role, with Ward named interim chief executive. The leadership change comes as Executive Chairman Douglas Bergeron cited years of declining earnings and insufficient business investment, adding to investor concern about the company’s outlook and transition. Interim CEO announcement

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Weiss Ratings raised Ethan Allen Interiors from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, October 29th. Zacks Research raised Ethan Allen Interiors from a “strong sell” rating to a “hold” rating in a research note on Monday, October 19th. Finally, Telsey Advisory Group reduced their price objective on Ethan Allen Interiors from $24.00 to $22.00 and set a “market perform” rating on the stock in a research note on Thursday, July 30th. Three analysts have rated the stock with a Hold rating. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $22.00.

Insider Buying and Selling at Ethan Allen Interiors

In related news, CEO M Kathwari sold 1,063 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $25.04, for a total value of $26,617.52. Following the sale, the chief executive officer directly owned 22,077 shares in the company, valued at $552,808.08. This represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 9.92% of the company’s stock.

Hedge Funds Weigh In On Ethan Allen Interiors

Several institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP bought a new position in Ethan Allen Interiors during the second quarter worth $30,000. Global Retirement Partners LLC grew its holdings in Ethan Allen Interiors by 363.7% in the third quarter. Global Retirement Partners LLC now owns 1,521 shares of the company’s stock worth $32,000 after purchasing an additional 1,193 shares during the period. NewEdge Advisors LLC bought a new stake in Ethan Allen Interiors in the second quarter valued at $67,000. Signaturefd LLC increased its stake in Ethan Allen Interiors by 100.5% in the third quarter. Signaturefd LLC now owns 3,734 shares of the company’s stock valued at $78,000 after purchasing an additional 1,872 shares in the last quarter. Finally, PNC Financial Services Group Inc. increased its stake in Ethan Allen Interiors by 132.1% in the first quarter. PNC Financial Services Group Inc. now owns 3,899 shares of the company’s stock valued at $87,000 after purchasing an additional 2,219 shares in the last quarter. 83.80% of the stock is owned by institutional investors and hedge funds.

Ethan Allen Interiors Price Performance

The firm’s fifty day moving average price is $20.95 and its two-hundred day moving average price is $21.93. The stock has a market cap of $455.11 million, a price-to-earnings ratio of 17.84 and a beta of 1.09.

About Ethan Allen Interiors

Ethan Allen Interiors Inc. (NYSE: ETD) is a vertically integrated home furnishings company that designs, manufactures, markets and sells furniture and related products. Its offerings include living room, dining room and bedroom furniture, upholstery, case goods, home accents, mattresses and other furnishings for residential interiors. The company sells its products through a network of Ethan Allen Design Centers, interior designers and independent retailers, as well as through its website and other digital channels.