Ethan Allen

On July 26 Ethan Allen (NSDQ: ETH) brought home some great numbers. Revenue grew 6% to $206 million, $5 million higher than estimates. Earnings per share grew 32% to 57 cents, 10% higher than analysts expected. Profit margins expanded once again as the company’s newly designed lines sold at full price. A decline in backlog was the one blemish for the quarter, but we are inclined to believe management’s explanation that quicker shipping times are distorting that metric’s ability to predict future sales accurately. A November launch of the much anticipated Disney children’s line should drive earnings higher.

Installed Building Products

New home starts rose 4.8% in June, allaying concerns that a mild winter had “borrowed” construction numbers from the spring. The fear was that an unseasonably warm winter nationwide allowed builders to start projects slated for spring early. New applications for building permits rose 1.5% to 1.153 million and are a good omen for Installed Building’s future growth. Most Installed Building products are used in the last stages of building a home, creating a lag between jumps in new home starts and rising sales for the company. Installed Building Products (NYSE: IBP) reports its second quarter in late July.

Integrated Device Technology

In mid-July SoftBank announced the shocking $32 billion acquisition of microprocessor ARM Holdings. The purchase represents a shift for the Japanese conglomerate from its traditional software acquisitions to companies involved in the Internet of Things. The rich price of 47 times next year’s estimate lifted all stocks in the IoT space, including Integrated Device Technology (NSDQ: IDTI), which is already supplying chips for automobiles and medical devices to help make them more intelligent. Integrated Device Technology reports second-quarter earnings on Aug. 1.

On Assignment

On Assignment (NYSE: ASGN) delivered on all fronts with earnings on July 27. Revenue jumped 25% to $608 million, $8 million higher than estimates. Even without the contribution from the acquisition of digital design firm Creative Circle, revenue grew an impressive 14%. Earnings per share equaled 80 cents, better than the 78 cents anticipated. Although guidance for the third quarter is within expectations, it will be the slowest-growing quarter of the year due to an especially strong quarter last year. Abundant cash flow enabled On Assignment to pay down $139 million of debt taken on to finance the Creative Circle acquisition.

Supreme Industries

The company blew away second-quarter results on July 22. Earnings per share for Supreme Industries (NYSE: STS) exploded 85% to 48 cents, roaring past expectations by 32 cents. Revenue growth of 12% outpaced the industry’s single-digit growth as Supreme continues to take share from competitors. Profit margins expanded to 24% from 19% the previous year. Although the backlog is up just slightly, management noted it contains more profitable orders, a good omen for future numbers. A possible new contract for armored trucks could propel numbers even higher. Wall Street analysts don’t follow Supreme much, but with numbers like these, we expect it will garner some attention. We increased our target to $30 from $23 due to increasing estimates. We now see Supreme earning $1.14 per share this year compared with an earlier expectation of 98 cents.