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Will Lumber Liquidators (LL) Disappoint This Earnings Season?

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Lumber Liquidators Holdings, Inc. (LL - Free Report) , a specialty retailer in the home improvement services industry, is set to report its first quarter 2014 results on Apr 30, 2014. Last quarter, it posted a positive surprise of nearly 2.8%. Let us see how things are developing for this announcement.

Growth Factors in the Past Quarter

Lumber Liquidators’ fourth-quarter 2013 results were impressive owing to the company’s multi-year strategic initiatives. Moreover higher traffic due to recovering housing market gave a tremendous boost to sales. During 2013, the company’s net sales for the first time crossed the $1.0 billion mark.

Earnings Whispers

Our proven model does not conclusively project Lumber Liquidators as likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.

Zacks ESP:  ESP for Lumber Liquidators is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 63 cents.

Zacks Rank #3 (Hold): Lumber Liquidators’ Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:

The Walt Disney Co’s (DIS - Free Report) Earnings ESP stands at +1.03% and it carries a Zacks Rank #2 (Buy).

Church & Dwight Co. Inc. (CHD - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank #3 (Hold).

The Allstate Corp. (ALL - Free Report) with an Earnings ESP of +0.88% holds a Zacks Rank #3 (Hold).

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