3 Stocks Pushing The Consumer Durables Industry Lower

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The Consumer Durables industry as a whole closed the day down 1.2% versus the S&P 500, which was down 1.1%. Laggards within the Consumer Durables industry included Entertainment Gaming Asia ( EGT), down 2.2%, Koss ( KOSS), down 4.2%, SGOCO Group ( SGOC), down 4.7%, Marine Products ( MPX), down 3.9% and Elecsys ( ESYS), down 1.6%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Ethan Allen Interiors ( ETH) is one of the companies that pushed the Consumer Durables industry lower today. Ethan Allen Interiors was down $0.86 (3.7%) to $22.38 on heavy volume. Throughout the day, 398,751 shares of Ethan Allen Interiors exchanged hands as compared to its average daily volume of 206,600 shares. The stock ranged in price between $22.06-$23.22 after having opened the day at $23.21 as compared to the previous trading day's close of $23.24.

Ethan Allen Interiors Inc. designs, manufactures, sources, sells, and distributes a range of home furnishings and accessories; and provides home decorating and design solutions. The company operates in two segments, Wholesale and Retail. Ethan Allen Interiors has a market cap of $670.2 million and is part of the consumer goods sector. Shares are down 23.8% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Ethan Allen Interiors a buy, no analysts rate it a sell, and 5 rate it a hold.

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TheStreet Ratings rates Ethan Allen Interiors as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on ETH go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Household Durables industry average. The net income increased by 20.2% when compared to the same quarter one year prior, going from $4.37 million to $5.26 million.
  • ETH's revenue growth trails the industry average of 17.7%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
  • ETHAN ALLEN INTERIORS INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ETHAN ALLEN INTERIORS INC reported lower earnings of $1.12 versus $1.70 in the prior year. This year, the market expects an improvement in earnings ($1.35 versus $1.12).
  • The gross profit margin for ETHAN ALLEN INTERIORS INC is rather high; currently it is at 56.46%. Regardless of ETH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ETH's net profit margin of 3.03% compares favorably to the industry average.

You can view the full analysis from the report here: Ethan Allen Interiors Ratings Report

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At the close, Marine Products ( MPX) was down $0.31 (3.9%) to $7.57 on light volume. Throughout the day, 8,044 shares of Marine Products exchanged hands as compared to its average daily volume of 19,500 shares. The stock ranged in price between $7.57-$8.04 after having opened the day at $7.88 as compared to the previous trading day's close of $7.88.

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats in the sportboat, deckboat, cruiser, sport yacht, and sport fishing markets worldwide. Marine Products has a market cap of $301.4 million and is part of the consumer goods sector. Shares are down 21.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Marine Products a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Marine Products as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on MPX go as follows:

  • MPX's revenue growth has slightly outpaced the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MPX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. The net income increased by 36.5% when compared to the same quarter one year prior, rising from $1.45 million to $1.98 million.
  • MARINE PRODUCTS CORP has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past two years indicate the company has sound management over its earnings and share float. We anticipate the company beginning to experience more growth in the coming year. During the past fiscal year, MARINE PRODUCTS CORP's EPS of $0.19 remained unchanged from the prior years' EPS of $0.19. This year, the market expects an improvement in earnings ($0.25 versus $0.19).
  • Net operating cash flow has increased to $9.33 million or 38.89% when compared to the same quarter last year. Despite an increase in cash flow, MARINE PRODUCTS CORP's cash flow growth rate is still lower than the industry average growth rate of 58.51%.

You can view the full analysis from the report here: Marine Products Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Entertainment Gaming Asia ( EGT) was another company that pushed the Consumer Durables industry lower today. Entertainment Gaming Asia was down $0.02 (2.2%) to $0.72 on light volume. Throughout the day, 1,117 shares of Entertainment Gaming Asia exchanged hands as compared to its average daily volume of 9,800 shares. The stock ranged in price between $0.72-$0.72 after having opened the day at $0.72 as compared to the previous trading day's close of $0.74.

Entertainment Gaming Asia Inc. engages in the ownership and leasing of electronic gaming machines (EGMs) in resorts, hotels, and other venues primarily in Cambodia and the Philippines. Entertainment Gaming Asia has a market cap of $24.1 million and is part of the consumer goods sector. Shares are down 35.5% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Entertainment Gaming Asia as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on EGT go as follows:

  • ENTERTAINMENT GAMING ASIA has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, ENTERTAINMENT GAMING ASIA swung to a loss, reporting -$0.17 versus $0.07 in the prior year.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, ENTERTAINMENT GAMING ASIA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 55.06%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for ENTERTAINMENT GAMING ASIA is rather high; currently it is at 50.61%. Regardless of EGT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EGT's net profit margin of -20.97% significantly underperformed when compared to the industry average.
  • EGT, with its decline in revenue, underperformed when compared the industry average of 7.3%. Since the same quarter one year prior, revenues fell by 29.0%. 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: Entertainment Gaming Asia Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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