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Lifetime Brands (LCUT) Soars 6.4%: Is Further Upside Left in the Stock?

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Lifetime Brands (LCUT - Free Report) shares soared 6.4% in the last trading session to close at $15.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.9% loss over the past four weeks.

Shares of Lifetime Brands got a boost following the company’s stronger-than-anticipated fourth-quarter 2020 results. The company’s core U.S. business delivered its sixth straight quarter of year-over-year increase, courtesy of higher demand for kitchenware products. The company also attained significant progress across its international business during the quarter under review.

Markedly, the company posted adjusted earnings of $0.70 per share that comfortably surpassed the Zacks Consensus Estimate of $0.62. Total revenues of $249.2 million came ahead of the Zacks Consensus Estimate of $235.5 million and increased 9.8% from the year-ago quarter. We note that the company’s core U.S. business registered growth of 10.7%.

Price and Consensus

Price Consensus Chart for Lifetime Brands

This kitchen products company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +25.9%. Revenues are expected to be $150.87 million, up 4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Lifetime Brands, the consensus EPS estimate for the quarter has been revised lower by $0.02 over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LCUT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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