Furniture Brands Follows Sector Downward Despite Backing Guidance, Upbeat Analyst Report
NEW YORK (AP) — Shares of Furniture Brands International Inc. continued to follow an industry-wide slump Thursday, despite its reaffirmation of modestly positive sales expectations and a mildly upbeat analyst note.
Shares of Furniture Brands fell $1.71, or 8.3 percent, to $18.87 on the New York Stock Exchange in above average midday trading volume. The stock has traded in a 52-week range of $16.07 to $25.34.
A Raymond James & Associates Inc. analyst reaffirmed a Wednesday downgrade to an “Outperform” rating from “Strong Buy,” and a $31 target price on the stock in a Thursday note to clients.
Shares of Furniture Brands and other furniture makers fell Wednesday on fears of interest rate hikes, concerns over a retail slump and a bearish forecast and quarterly losses reported by recliner maker La-Z-Boy Inc.
Furniture Brands, who sells furniture under the Lane, Thomasville and Broyhill brands, reaffirmed its second-quarter guidance after the market closed Wednesday, saying it expects “slightly positive sales” despite a seasonally tough furniture market.
The company expects per-share earnings of 29 cents to 33 cents for the quarter.
“Given Wednesday’s stock action, the refreshed earnings guidance will likely be welcome and we expect that the shares may regain all or part of Wednesday’s decline,” the analyst wrote.
Furniture Brands’ stock, which closed down 2 percent at $20.58 on Wednesday, has tumbled 19 percent since hitting its 52-week high of $25.34 on March 30.
However, the analyst lowered his second-quarter revenue expectation for the St. Louis-based company to $597 million from $617 million and reaffirmed per-share earnings predictions of 37 cents for the second quarter and $1.53 for the year.
Analysts polled by Thomson Financial forecast per-share earnings of 36 cents for the quarter and $1.57 for the year.
Meanwhile, shares of Ethan Allen Interiors fell 60 cents to $34.42 and shares of La-Z-Boy Inc. shed 24 cents to $12.01 in above average midday trading volume on the New York Stock Exchange,
Shares of Stanley Furniture Co. Inc. lost 49 cents, or 2.1 percent, to $22.99 on the Nasdaq.
