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LZB shares have been weak not just in the near term but over the last several years overall.
The company fell short of both our consensus EPS and sales estimates in its latest release.
Shares plunged following its latest earnings, with the overall top line trend notably weak over past years.
La-Z-Boy (LZB - Free Report) manufactures and sells residential furniture, best known for its iconic recliners and upholstered furniture offerings. Its products are sold through company-owned La-Z-Boy Furniture Galleries, independent dealers, and other retail channels.
The stock is a current Zacks Rank #5 (Strong Sell), reflecting a bearish shift in earnings expectations over recent months.
Image Source: Zacks Investment Research
La-Z-Boy Posts Soft Results
LZB’s latest set of results came in below our expectations, posting adjusted earnings of $0.43 per share, reflecting a 10.4% miss relative to the Zacks Consensus Estimate and down 9% YoY. Sales of $476 million also missed our estimate by nearly 5%, falling 3% from the same period last year.
Its top line has remained rather stagnant over the past three years.
Image Source: Zacks Investment Research
LZB provided a somewhat soft sales outlook for the next period, also noting that investments in advertising, new stores, pricing initiatives, and its digital transformation are likely to weigh on profitability. Shares faced pressure following the release, now down nearly 15% overall over the past three months and erasing .
Image Source: Zacks Investment Research
Bottom Line
Negative earnings estimate revisions and a soft sales outlook paint a challenging picture for the company’s shares in the near term.
La-Z-Boy (LZB - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
View the Zacks #1 Rank List
Bear of the Day: La-Z-Boy (LZB)
Key Takeaways
La-Z-Boy (LZB - Free Report) manufactures and sells residential furniture, best known for its iconic recliners and upholstered furniture offerings. Its products are sold through company-owned La-Z-Boy Furniture Galleries, independent dealers, and other retail channels.
The stock is a current Zacks Rank #5 (Strong Sell), reflecting a bearish shift in earnings expectations over recent months.
Image Source: Zacks Investment Research
La-Z-Boy Posts Soft Results
LZB’s latest set of results came in below our expectations, posting adjusted earnings of $0.43 per share, reflecting a 10.4% miss relative to the Zacks Consensus Estimate and down 9% YoY. Sales of $476 million also missed our estimate by nearly 5%, falling 3% from the same period last year.
Its top line has remained rather stagnant over the past three years.
Image Source: Zacks Investment Research
LZB provided a somewhat soft sales outlook for the next period, also noting that investments in advertising, new stores, pricing initiatives, and its digital transformation are likely to weigh on profitability. Shares faced pressure following the release, now down nearly 15% overall over the past three months and erasing .
Image Source: Zacks Investment Research
Bottom Line
Negative earnings estimate revisions and a soft sales outlook paint a challenging picture for the company’s shares in the near term.
La-Z-Boy (LZB - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.