Bassett Furniture Q3 revenue up 5.9%, beats expectations

Overview

• Bassett Furniture Q3 revenue rose 5.9% yr/yr, beating analyst expectations

• Diluted EPS for Q3 was $0.09, compared to a loss of $(0.52) last year

• Operating income improved to $0.6 mln from a loss of $6.4 mln last year

Outlook

• Bassett did not provide specific financial guidance for future quarters

Result Drivers

• REVENUE GROWTH - Revenue increased 5.9% yr/yr, driven by higher sales levels and excluding Noa Home Inc., growth was 7.3%

• MARGIN IMPROVEMENT - Gross margin improved by 320 basis points due to better wholesale margins and absence of cyber incident costs

• COST CONTAINMENT - SG&A expenses reduced by 420 basis points due to restructuring and cost containment efforts

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for Bassett Furniture Industries Inc is $19.00, about 16.3% above its October 7 closing price of $15.90

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNXt1krt

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