Bassett Furniture Industries, Incorporated BSET is set to report its third-quarter fiscal 2024 results on Oct. 9, after market close.

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In the last reported quarter, the company’s earnings and net sales missed the Zacks Consensus Estimate by 58.3% and 3.3%, respectively.

BSET’s earnings surpassed the consensus mark in two of the trailing four quarters and missed on the other two occasions, the average negative surprise being 289.8%.

BSET’s Trend in Estimate Revision

The Zacks Consensus Estimate for Bassett’s fiscal third-quarter loss per share has widened to 34 cents from 12 cents over the past 60 days. The estimated figure indicates a 13.3% decline from the year-ago quarter’s figure.

The consensus mark for net sales is pegged at $78.6 million, indicating a year-over-year decline of 9.9%.

Factors to Shape Up BSET’s Results

Bassett’s top line is expected to decline year over year due to the adverse impacts of the closure of a few of its manufacturing plants and sluggish demand trends due to lingering inflation and a slow housing market trajectory. This, accompanied by the ransomware attack faced by the company in July 2024, is likely to have disrupted the smoothness of its business operations, thus negatively impacting its top-line growth. BSET’s decision to close its mid-price e-commerce furniture retailer, Noa Home, due to its inability to generate sales and earn profit margins, is also likely to have hurt its sales trend.

Nonetheless, the company’s focus on a newly drafted restructuring strategy underscoring organic growth through branded retail locations, omnichannel capabilities and enhanced customization positioning, along with optimizing inventory and dropping unproductive lines, is likely to have partially offset the headwinds.

BSET’s bottom line is also expected to be marred due to a decline in net sales and ongoing restructuring initiatives to foster growth in this uncertain economic condition. That said, the company’s focus on improving its overall cost structure is likely to have bode well to some extent.

What the Zacks Model Predicts

Our proven model does not conclusively predict an earnings beat for Bassett this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you will see below.

Earnings ESP: BSET has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat.

Las Vegas Sands Corp. LVS has an Earnings ESP of +4.57% and a Zacks Rank of 3 at present.

LVS’ earnings for the third quarter of 2024 are expected to remain flat. It reported better-than-expected earnings in two of the trailing four quarters and missed on other two occasions, with an average surprise of 2.1%.

Boyd Gaming Corporation BYD currently has an Earnings ESP of +2.53% and a Zacks Rank of 3.

BYD’s earnings for the third quarter of 2024 are expected to increase 3.7%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being 3.6%.

Red Rock Resorts, Inc. RRR currently has an Earnings ESP of +3.53% and a Zacks Rank of 3.

RRR’s earnings for the third quarter of 2024 are expected to decline 38.3%. It reported better-than-expected earnings in each of the trailing four quarters, with an average surprise of 67.2%.

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Boyd Gaming Corporation (BYD) : Free Stock Analysis Report

Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report

Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report

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