NEW YORK (TheStreet) -- Shares of Haverty Furniture Companies Inc. (HVT - Get Report) are down -1.92% to $25.60 after it reported second quarter sales of $175.1 million, missing the Capital IQ consensus estimate of $177.32 million.
Comparable same store sales for the second quarter rose 3.2% versus an estimated rise of 4.5% in the period.
TheStreet Ratings team rates HAVERTY FURNITURE as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HAVERTY FURNITURE (HVT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HVT's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 56.76% to $8.45 million when compared to the same quarter last year. In addition, HAVERTY FURNITURE has also vastly surpassed the industry average cash flow growth rate of -3.80%.
- The gross profit margin for HAVERTY FURNITURE is rather high; currently it is at 56.83%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.37% trails the industry average.
- HVT, with its decline in revenue, slightly underperformed the industry average of 1.4%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: HVT Ratings Report