Haverty Furniture Companies, Inc. (NYSE:HVT) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$195m, some 3.0% above estimates, and statutory earnings per share (EPS) coming in at US$0.32, 52% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the consensus forecast from Haverty Furniture Companies' twin analysts is for revenues of US$804.6m in 2026. This reflects a credible 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 25% to US$1.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$797.1m and earnings per share (EPS) of US$1.73 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 12% to US$33.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Haverty Furniture Companies is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.3% annualised growth until the end of 2026. If achieved, this would be a much better result than the 8.0% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.9% annually. So while Haverty Furniture Companies' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Haverty Furniture Companies' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Haverty Furniture Companies , and understanding this should be part of your investment process.

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.