Hooker Furnishings: Aggressive Cost Savings Offset Sales Pressure
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Caffital Research1.85K FollowersFollow5ShareSavePlay(9min)CommentsSummaryHooker Furnishings Corporation's Q3 revenues still reflect industry weakness. Hospitality orders remain incredibly pressured.HOFT's aggressive cost savings have stabilized profitability. Despite a sharp sales decline, HOFT's underlying operating income even improved.The divestment of Pulaski and Samuel Lawrence Furniture removes underperforming brands, improving the profitability outlook.I estimate HOFT stock to have a fair value of $11.2. Klaus Vedfelt/DigitalVision via Getty Images Hooker Furnishings Corporation (HOFT) reported the company’s fiscal Q3 results from the August-October period on the 11th of December. The furnishings company’s performance has remained soft as hospitality shipments have slowedThis article was written byCaffital Research1.85K FollowersFollowI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You