Haverty Furniture Companies Q4 EPS Beat Challenges Long Term Earnings Decline Narrative

Haverty Furniture Companies posts steady FY 2025 finish with higher Q4 earnings

Haverty Furniture Companies (HVT) has wrapped up FY 2025 with Q4 revenue of US$201.9 million and basic EPS of US$0.52, alongside net income of US$8.5 million, setting a clear marker for how the year closed. The company has seen quarterly revenue move from US$175.9 million in Q3 FY 2024 to US$201.9 million in Q4 FY 2025, while basic EPS shifted from US$0.30 to US$0.52 over the same stretch, giving investors a clearer view of how the top and bottom lines have tracked into the latest report. With trailing 12 month net margins in the low single digits, the focus now is on whether these results reflect improving profitability or stabilising margins.

See our full analysis for Haverty Furniture Companies.

With the headline numbers on the table, the next step is to see how these results align with the widely held narratives around Haverty Furniture Companies, including views on growth momentum, earnings power, and the quality of its margins.

See what the community is saying about Haverty Furniture Companies

Margins stay thin at 2.6% on a trailing basis

• On a trailing 12 month view, Haverty Furniture Companies generated US$759.0 million of revenue and US$19.7 million of net income, which works out to a net margin of 2.6%, slightly lower than the prior year's 2.8%.
• Consensus narrative expects profit margins to reach 12.1% in a few years, so the current 2.6% level sits well below those assumptions and:
  • Highlights a gap between today’s thin profitability and the longer term margin uplift that analysts are building into their models.
  • Makes the pace of any margin change an important factor if you are weighing the consensus view against the recent trailing figures.

EPS trends contrast with 27% historical earnings decline

• Over FY 2025, quarterly basic EPS moved from US$0.23 in Q1 to US$0.52 in Q4, while trailing 12 month EPS sits at US$1.21, set against a five year history where earnings have reportedly declined by about 27% per year.
• Bulls point to forecast EPS growth of about 42.85% per year as a sharp turn from that 27% historical decline, and:
  • The Q4 EPS of US$0.52 compared with the FY 2025 trailing EPS of US$1.21 shows how much weight recent quarters carry in that growth story.
  • The trailing net income of US$19.7 million versus bullish expectations for earnings above US$100 million in later years underlines how ambitious those growth paths are compared to what the business has produced so far.

Have bulls got the growth story right when recent EPS and long term decline are pulling in different directions for HVT? 🐂 Haverty Furniture Companies Bull Case

Valuation gap vs DCF and dividend coverage concerns

• The shares trade at US$25.32 with a P/E of 20.9x, compared with a DCF fair value of about US$55.29 and a P/E slightly below both the US specialty retail industry average of 21x and peer average of 23.4x, while the dividend yield is 5.21% and not well covered by trailing earnings.
• Bears focus on the weak dividend coverage and long run earnings decline, and:
  • Point out that a 5.21% yield funded by trailing net income of US$19.7 million and a 2.6% margin could leave less flexibility if profits stay around current levels.
  • Combine the five year, 27% annual earnings decline with the thin margin to argue that any apparent discount to the US$55.29 DCF fair value and to peer P/E levels may be tied to these payout and profitability pressures.

Skeptics question whether a stock on 20.9x earnings with a thin 2.6% margin can sustain a 5%+ yield over time. 🐻 Haverty Furniture Companies Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Haverty Furniture Companies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With bulls and bears both making strong cases, it helps to move quickly from opinions to numbers and test the story yourself. You can get a balanced view of where things stand by looking at 3 key rewards and 2 important warning signs and weighing those points against your own expectations for the business.

See What Else Is Out There

Haverty Furniture Companies is working with thin 2.6% margins, a history of 27% annual earnings decline, and a dividend that is not well covered by earnings.

If those tight margins and stretched dividend coverage make you cautious, it is worth checking companies screened for stronger payout support and resilience through 16 dividend fortresses today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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