Lumber Liquidators, Inc.

Company Description

Lumber Liquidators, Inc. is a retailer of hardwood flooring. The company operates through over 100 locations in addition its web site and an 800 number.

Lumber Liquidators' product offering is substantially comprised of its own brands, including its Bellawood brand, as well as its Builder's Pride, Virginia Mill Works, Schon, Morning Star Bamboo and Dream Home brands.

Sales, Income Rising

On May 6 the company released is first quarter results that included sales of $124 million, an 8% year-over-year increase. Same-store sales declined slightly but were out weighed by a $16 million rise in non-comparable sales and 10 new locations.

Earnings came in at $5.1 million, an 18% increase since the same quarter last year. Earnings per share were $0.19, beating the consensus by a penny. This was the third consecutive earnings surprise.

Positive Commentary

In the same release management reiterated its guidance that included opening up to 36 new locations throughout the year. Jeffrey Griffiths, President and CEO, added "Our strong capital structure, combined with our highly attractive value proposition and low-cost and adaptable business model, place Lumber Liquidators in a strong position to further expand the business and capture additional market share as we move forward."

Upward Revisions

Over the past 3 months the consensus estimate is up 3 cents to $0.84 for full-year 2009. Forecasts for next year are averaging $0.96, up 6 cents over that period.

These projections would yield growth rates of 2% and 15%, respectively.

The Chart

Shares of LL initially sold off following the earnings announcement, but have since recovered and are flirting with the 52-week high. Take a look at the chart below.

Read the full analyst report on LL