Ethan Allen Interiors Inc. Stock Upgraded (ETH)

NEW YORK ( TheStreet) -- Ethan Allen Interiors (NYSE: ETH) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 42.3%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ETHAN ALLEN INTERIORS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ETHAN ALLEN INTERIORS INC turned its bottom line around by earning $1.01 versus -$1.53 in the prior year. This year, the market expects an improvement in earnings ($1.02 versus $1.01).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 683.0% when compared to the same quarter one year prior, rising from $3.52 million to $27.55 million.
  • The gross profit margin for ETHAN ALLEN INTERIORS INC is rather high; currently it is at 56.20%. It has increased from the same quarter the previous year.
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Ethan Allen Interiors Inc., together with its subsidiaries, engages in the design, manufacture, sourcing, sale, and distribution of home furnishings and accessories. The company provides home decorating and design solutions through its home furnishing retail network. The company has a P/E ratio of 25.1, below the average consumer durables industry P/E ratio of 27.9 and above the S&P 500 P/E ratio of 17.7. Ethan Allen has a market cap of $707.2 million and is part of the consumer goods sector and consumer durables industry. Shares are down 9.9% year to date as of the close of trading on Tuesday.

You can view the full Ethan Allen Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff
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