Back to top

Analyst Blog

Zacks Equity Research

Strong Buy on Lumber Liquidators

LL HD LOW

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Mar 22, 2013, Zacks Investment Research upgraded Lumber Liquidators Holdings Inc. (LL - Snapshot Report) to a Zacks Rank #1 (Strong Buy). Shares of this specialty retailer of hardwood flooring have amassed an impressive year-to-date return of 25%.

Why the Upgrade?

Lumber Liquidators has been witnessing rising earnings estimates owing to better-than-expected fourth-quarter 2012 results, on the back of strategic initiatives undertaken by management, which include augmenting its top-line performance, efficient merchandise planning and optimizing its supply chain.

The company declared impressive results on Feb 20, 2013, wherein earnings of 50 cents a share surpassed the Zacks Consensus Estimate of 42 cents by 19.1%, and rose 66.7% from the year-ago quarter.

Lumber Liquidators, which primarily competes with Lowe's Companies Inc. (LOW - Analyst Report) and The Home Depot Inc. (HD - Analyst Report), outperformed the Zacks Consensus Estimates in 4 straight quarters by an average of 29.7%. The long-term expected earnings growth rate for the stock is 15%.

Net sales jumped 20.8% over the prior-year quarter to $210.7 million, and came ahead of the Zacks Consensus Estimate of $197 million. Comparable-store sales grew 13.2%, supported by a 9.1% rise in the number of customers. Gross margin expanded 360 basis points to 39.1%, benefiting from lower product costs.

Buoyed by better-than-expected results, management now projects full-year 2013 net sales in the range of $885 million to $920 million. Comparable-store net sales are now expected to rise in the mid-single digits. Earnings are forecasted between $1.90 and $2.15 per share. Currently, Lumber Liquidators expects to open 25 to 35 new stores over the course of the year.

The Zacks Consensus Estimate for 2013 rose 7% to $2.15 per share over the last 60 days. For 2014, the Zacks Consensus Estimate advanced 4.9% over the same timeframe to $2.56 per share.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%