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

Ethan Allen Interiors Inc. (NYSE:ETD)’s share price reached a new 52-week low during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $17.40 and last traded at $18.06, with a volume of 1,867,706 shares traded. The stock had previously closed at $20.34.

The company reported $0.10 earnings per share (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 the consensus estimate of $135.60 million. Ethan Allen Interiors had a return on equity of 6.12% and a net margin of 5.54%. The firm’s revenue was down 11.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.43 EPS.

Ethan Allen Interiors Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 20th will be issued a dividend of $0.20 per share. The ex-dividend date is Friday, November 20th. This represents a $0.80 annualized dividend and a dividend yield of 4.4%. Ethan Allen Interiors’s payout ratio is currently 100.00%.

Ethan Allen Interiors News Roundup

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

Several research firms recently issued reports on ETD. Zacks Research raised shares of Ethan Allen Interiors from a “strong sell” rating to a “hold” rating in a research report on Monday, October 19th. Weiss Ratings upgraded shares of Ethan Allen Interiors from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, October 29th. Finally, Telsey Advisory Group dropped their price objective on shares of 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 research analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $22.00.

Insider Buying and Selling

In other news, CEO M Kathwari sold 1,063 shares of the 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 completion of the sale, the chief executive officer directly owned 22,077 shares of the company’s stock, valued at $552,808.08. This represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 9.92% of the company’s stock.

Institutional Investors Weigh In On Ethan Allen Interiors

Institutional investors have recently bought and sold shares of the stock. Public Sector Pension Investment Board purchased a new stake in Ethan Allen Interiors in the 3rd quarter valued at $713,000. Global Retirement Partners LLC boosted its holdings in Ethan Allen Interiors by 363.7% during the 3rd quarter. Global Retirement Partners LLC now owns 1,521 shares of the company’s stock worth $32,000 after acquiring an additional 1,193 shares during the last quarter. Royce & Associates LP boosted its holdings in Ethan Allen Interiors by 5.5% during the 3rd quarter. Royce & Associates LP now owns 964,280 shares of the company’s stock worth $20,163,000 after acquiring an additional 50,000 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Ethan Allen Interiors in the 3rd quarter worth $401,000. Finally, Unison Advisors LLC grew its stake in shares of Ethan Allen Interiors by 1.8% in the 3rd quarter. Unison Advisors LLC now owns 33,758 shares of the company’s stock worth $706,000 after acquiring an additional 594 shares in the last quarter. Institutional investors own 83.80% of the company’s stock.

Ethan Allen Interiors Stock Performance

The company’s 50 day moving average price is $20.95 and its 200-day moving average price is $21.93. The stock has a market cap of $455.11 million, a P/E ratio of 17.84 and a beta of 1.09.

Ethan Allen Interiors Company Profile

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.