Hooker Furniture (HOFT – Snapshot Report) is cashing in on the strong housing market as consumers buy new furniture for their new houses. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth this year.

Founded in 1924 in Martinsville, Virginia, Hooker continues to make furniture under the brands Hooker Furniture Collection, Sam Moore and Bradington-Young.

It makes products in the home entertainment, home office, and accent areas as well as dining and bedroom furniture. The company also makes leather and custom upholstery sofas and sectionals.

4th Beat in a Row in Q2

On Sep 3, Hooker reported fiscal second quarter 2016 results and beat the Zacks Consensus Estimate for the fourth consecutive quarter.

They haven’t been small beats either. It beat the Zacks Consensus in the second quarter by 9 cents, or 33%, with earnings of 36 cents versus the consensus of 27 cents.

Over the last four quarters, its average surprise has been by 26%.

Not too shabby.

There was strength across all segments of its business in the second quarter, which is unusual because the summer is historically the furniture industry’s weakest time of the year.

Sales rose 9.6% year over year as the casegoods segment saw sales rebound from flat sales in the first quarter. In Upholstery, sales were flat for the quarter and down 2.9% in the first half.

No Long Term Debt

Inventories rose slightly in the second quarter but that is typical as the company stocks its most popular items for the strong fall selling season.

It finished the quarter with $43.6 million in cash and cash equivalents and no long term debt. It also still has $13.5 million available on its revolving credit line of $15 million.

Even though Hooker is a small cap company with a market cap of just $280 million, it still rewards shareholders with a dividend which is currently yielding 1.6%.

Shares Near Multi-Year Highs

Given the strength in the furniture industry, it’s not surprising that Hooker shares have rallied over the last 2 years and now sit near 2-year highs.