Nova Lifestyle Inc (NASDAQ:NVFY) Jumps in Pre-Market on Guidance

Nova Lifestyle Inc (NASDAQ:NVFY)

Shares of Nova Lifestyle Inc (NASDAQ:NVFY) are up over 20% in the pre-market after the company provided financial guidance for Q4 2017. The pre-market low of $1.92 was hit at 7:45 AM EST, and the pre-market high was established at 7:53 AM EST at $2.38. Volume has been light to moderate.

Nova Lifestyle Inc (NASDAQ:NVFY) forecasted revenues to come in between $35 and $36 million. Net income guidance was$3 million – $3.5 million. Net income, per share, is expected to be in the range of $0.11 – $0.13 for the quarter. And, notably, Nova announced that it expects expanded profit margins across nearly all product lines.

Tawny Lam, CEO of Nova Lifestyle Inc (NASDAQ:NVFY) stated “Since the Company’s successful transformation in early 2017 from a low-margin furniture manufacturing business to a high-margin innovative designer and global marketer of modern lifestyle consumer products, we have significantly fine-tuned our product mix and deepened distribution channels, which led to our recently announced record 3rd quarter financial results.”

“Nova made over $1 million in net income during the month of October, a substantial increase over the same period last year. Nova expects the same growth momentum to continue for the balance of the 4th quarter of 2017 and well into 2018.”

Nova LifeStyle Business Model

Nova Lifestyle Inc (NASDAQ:NVFY) is headquartered in Commerce, California. The company designs, manufactures, and distributes modern LifeStyle furniture – primarily sofas, dining rooms, cabinets, office furniture and related components, bedrooms, and various accessories in matching collections. Nova’s products are made and marketed in the US, Europe, and Asia and include LifeStyle brands such as Diamond Sofa, Nova QwiK, and Bright Swallow International.

NVFY Stock Performance

Nova Lifestyle Inc (NASDAQ:NVFY) broke above strong resistance at $2 last week, sold off, then broke above the key threshold again yesterday. NVFY has a 52-week low of $1.06 and a 52-week high of $3.13.

Over the past quarter, the stock has outperformed, gaining over 30%. However, over the past year, NVFY stock has lost over 40%. Recently the company has been trading near it book/share value of $2.28. What is interesting is that listed reports have Nova Lifestyle’s cash per share at just $0.01.

Sales have not impressed over the last few years. In 2014, sales were reported at $98.7 million and that decreased to $92.6 million by 2016. Earnings have also been challenging. In 2014 EPS was at $0.42, but in 2016 the company posted a per share loss of (-$0.01).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NVFY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Nova Lifestyle Inc. (NASDAQ:NVFY)

Nova Lifestyle Inc. (NASDAQ:NVFY) 900% Net Income Increase

Nova Lifestyle Inc. (NASDAQ:NVFY)

Nova Lifestyle Inc. (NASDAQ:NVFY) shares gained 21.5% after the innovative designer and distributor of modern lifestyle consumer products reported record Q3 2017 financial results. According to the Chief Executive Officer, Tawny Lam, the stellar financial results reflect the successful transformation of the company.

Nova Lifestyle Inc. (NASDAQ:NVFY)

Returning Shareholder Value

Investors pushed the stock higher after the Chief Executive Officer reiterated they expect growth to continue into the fourth quarter. In addition, the executive says they plan to initiate stock buy-backs or start paying cash dividends to reward long-term shareholders.

The stellar financial results helped strengthen investors’ confidence in Nova Lifestyle Inc. (NASDAQ:NVFY)’s long-term prospects. The stock is currently trading in an uptrend after erasing all the losses accrued since the start of the year. The stock faces immediate resistance at $2.40, above which it could make a push for a 52-week high of $3.10 a share.

Q3 Financial Results

Renewed investor interest in Nova Lifestyle Inc. (NASDAQ:NVFY) follows the announcement of a 900% increase in net income that came in at $2.96 million or $0.11 a share. Net sales for the three months ended September 30, 2017, increased 8.8% to $33.2 million, compared to $30.5 million reported for the corresponding period last year.

Gross profit margin in the company improved to 18% on average, representing an increase of about 3%. Nova Lifestyle Inc. (NASDAQ:NVFY) attributes the stellar performance to a 200% increase in new product offerings combined with innovative product designs.

“Nova Lifestyle’s third quarter financial performance reflects the results of our successful transformation from an ‘asset heavy’ furniture-manufacturing business to a ‘light asset,’ high margin, consumer Product Company focused on innovative product designs and customer-centric marketing,” said Mr. Lam.

Nova Lifestyle’s Robust Growth

Strong customer demand across all product lines also continues to support Nova Lifestyle Inc. (NASDAQ:NVFY) growth prospects in the business. The company is projecting significant growth in the years to come, thanks to a record number of new product SKUs. This year, the company has increased its selection of bedroom offerings by 50%.

Rapid expansion is also expected to result in a diversified global customer base which should lead to more sales in the years to come.

“We see tremendous growth opportunities to further cement Diamond Sofa’s position as a leading product destination for retailers, home stagers, and designers,” said Mr., Lam.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NVFY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Nova Lifestyle Inc (NASDAQ:NVFY)

Nova Lifestyle Inc (NASDAQ:NVFY) Stock Meeting Sellers at $1.80 – Again

Nova Lifestyle Inc (NASDAQ:NVFY)

Shares of Nova Lifestyle Inc (NASDAQ:NVFY) have, in the last 60 days, tried twice to close over the $1.80 mark and twice sellers have stepped in to push the stock back down. Today volume is heavy for the furniture manufacturer – almost nine times the listed daily average. The company has announced it will be releasing its Q3 2017 earnings report before the market opens on Monday, October 13, 2017.

Nova Lifestyle Inc (NASDAQ:NVFY)

Nova Lifestyle Inc (NASDAQ:NVFY) is headquartered in Commerce, California. The company designs, manufactures, and distributes modern LifeStyle furniture – primarily sofas, dining rooms, cabinets, office furniture and related components, bedrooms, and various accessories in matching collections. Nova’s products are made and marketed in the US, Europe, and Asia and include LifeStyle brands such as Diamond Sofa, Nova QwiK, and Bright Swallow International.

NVFY Stock

Nova Lifestyle Inc (NASDAQ:NVFY) has a surprisingly low cash per share figure of just $0.01. However, traders have been pushing the stock up since early September when the stock was trading around the $1.10 handle. In the past quarter, NVFY stock has gained over 30%. For the year, shares are down over 45%.

Sales revenue has been flat since 2014 when the company reported a figure of $98.7 million – its best showing to date. After that, the company posted sales in 2015 at $89.9 million, and, for 2016, $92.6 million. During that time the number of outstanding shares has increased – diluting shareholder equity. In 2014 there were a reported 20.38 million shares outstanding. That number increased to 25.43 million by the end of 2016.

2016 represents the first year of negative earnings for the company since 2012 when it had a per share profit of $0.29. Last year the company posted a per share loss of (-$0.01).

According to available resources, no investment firms follow Nova Lifestyle Inc (NASDAQ:NVFY).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NVFY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Nova Lifestyle Inc (NASDAQ:NVFY)

Nova Lifestyle Inc. (NASDAQ:NVFY) Investors Anticipate a Robust Q3

Nova Lifestyle Inc. (NASDAQ:NVFY)

Nova Lifestyle Inc (NASDAQ:NVFY) shares rallied 17.5% after the lifestyle product company said increased consumer demand and new product launches should lead to robust Q3 financial results. Investors also pushed the stock higher after the U.S. News Express selected the company’s subsidiary, Diamond Sofa, as one of the top 5 Asian-American brands.

NVFY Stock Performance

The string of positive news helped push the stock to a key resistance level of $1.61 a share, above which it could make a push for the $2 a share mark. The stock continues to trade in a range after dropping from April highs of $2.60 a share. NVFY shares are down by more than 10% for the year.

Nova Lifestyle Inc (NASDAQ:NVFY)
One month NVFY stock price chart

The innovative designer and distributor of modern lifestyle products recorded welcome profits for the summer months. Strong customer demand saw the company generate a profit of $1 million with the growth rate expected to continue to the end of the year.

“We are seeing solid growth trends in our business along with healthy profit margins. We hope to significantly expand online sales by partnering with E-commerce giants such as Amazon.com, Hayneedle.com and others,” said CEO, Tawny Lam.

Business Transformation

Nova Lifestyle Inc. (NASDAQ:NVFY) has completed a milestone business restructuring that began late last year and continues to fuel the current growth phase. The company has successfully transformed itself from a manufacturing-oriented, asset-heavy enterprise into an asset-light operation, focused on efficient distribution and marketing.

Strong ordering activity from leading retailers such as Amazon, Wayfair, and Hayneedle also continues to support the belief that the company will post an impressive third quarter and full year. Its subsidiary Diamond Sofa is also doing business with four furniture subsidiaries owned Berkshire Hathaway.

Sofas beds and Coffee table sales accounted for a huge chunk of the company’s net sales for the quarter ending June 30, 2018. In a bid to remain competitive in the business, Nova Lifestyle Inc. (NASDAQ:NVFY) has introduced a number of new products, including the Chateau and Crawford lines, as it continues to explore ways of diversifying its revenue streams. The company has also met with a number of large global buyers as it looks to expand its footprint on the international scene.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NVFY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.