Bassett Furniture Industries, Incorporated’s BSET fourth-quarter fiscal 2024 earnings and revenues are expected to have decreased on a year-over-year basis, owing to an industry-wide soft demand for home furnishings.

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In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 52.9% and declined 73.3% year over year. Net sales lagged the consensus mark by 3.8% and decreased 13.3% from the prior-year level.

Earnings surpassed the consensus mark in one of the trailing four quarters and missed on three occasions, with a negative average surprise of 315.3%.

How are Estimates Placed for BSET’s Q4?

The Zacks Consensus Estimate for Bassett’s fiscal fourth-quarter earnings per share has remained unchanged at 5 cents in the past 60 days. The estimated figure indicates a 66.7% decline from the year-ago earnings per share of 15 cents.

The consensus mark for revenues is pegged at $82.85 million, indicating a year-over-year decline of 12.5%.

Factors Likely to Shape BSET’s Q4 Results

Bassett's fiscal fourth-quarter performance is likely to have been negatively impacted by a difficult sales environment for home furnishings, owing to the continued weakness in the U.S. housing market. Despite recent interest rate cuts by the Federal Reserve, the rate on a 30-year fixed mortgage increased from September to October and again in November. This rise in mortgage rates is likely to have added pressure to consumer spending and slowed demand for home furnishings.

Furthermore, during the first week of October, Hurricane Helene caused damage to the distribution center in Catawba County, NC, resulting in a two-day shutdown. The East Coast dock strike also created logistical challenges. These factors are likely to have impacted its fiscal fourth-quarter performance.

However, the company’s focus on driving organic growth through Bassett branded retail locations, omnichannel capabilities and enhanced customization positioning to expand its dedicated distribution footprints is likely to have aided BSET's performance in the to-be-reported quarter. Also, the company’s product line remakes to target new styling and price points are likely to have contributed positively to results.

The company has made significant progress on its restructuring plan, which is expected to have been completed by the end of the fiscal fourth quarter. The plan focuses on reducing costs, strengthening operations and driving long-term revenue growth and profitability. As part of this strategy, the company has been reducing expenses and investing in new products and services to improve its bottom line.

What Our Quantitative Model Predicts About BSET

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 is not the case here, as you will see below.

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

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

Stocks With Favorable Combinations

Here are some companies in the Zacks Consumer Discretionary sector, which, according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.

Life Time Group Holdings, Inc. LTH has an Earnings ESP of +28.21% and a Zacks Rank of 1 at present.

LTH is expected to register a 5.3% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.

Trip.com Group Limited TCOM currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.

TCOM reported better-than-expected earnings in all of the trailing four quarters, with an average surprise of 42.8%. It’s earnings for the to-be-reported quarter is expected to decrease 7.1%.

Royal Caribbean Cruises Ltd. RCL currently has an Earnings ESP of +0.15% and a Zacks Rank of 2.

RCL’s earnings for the to-be-reported quarter are expected to increase 20%. It reported better-than-expected earnings in all of the trailing four quarters, the average surprise being 16.2%.

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