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Lumber Liquidators (LL) to Post Q2 Earnings: What's in Store?

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Lumber Liquidators Holdings, Inc. (LL - Free Report) is likely to register an improvement in the top and the bottom line when it reports second-quarter 2021 numbers on Aug 4.

The Zacks Consensus Estimate for quarterly earnings of 31 cents per share suggests significant growth from 10 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past seven days. The leading specialty retailer of hard-surface flooring has a trailing four-quarter earnings surprise of 109.8%, on average. In the last reported quarter, the company delivered an earnings surprise of 61.9%.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $298.8 million, which suggests an increase of 29.8% from the figure reported in the prior-year quarter.

Lumber Liquidators Holdings, Inc Price and EPS Surprise

 

Lumber Liquidators Holdings, Inc Price and EPS Surprise

Lumber Liquidators Holdings, Inc price-eps-surprise | Lumber Liquidators Holdings, Inc Quote

 

Things to Note

Lumber Liquidators is benefiting from solid demand for home improvement projects and momentum in the installation business. The company’s focus on digital business is also driving growth. Management is investing in more efficient and effective digital marketing. Lumber Liquidators’ focus on its transformation plan bodes well. It’s four strategic pillars — improving the customer experience, driving traffic and transactions, improving profitability as well as people and culture — are upsides. These factors are likely to have driven the company’s performance in the second quarter of 2021.

However, the company has been grappling with additional tariffs. In its last earnings call, management highlighted that it expects to see gross margin pressure stemming from increased transportation and raw material costs throughout 2021. We believe that such trends are likely to have affected the company’s performance in the to-be-reported quarter. 

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Lumber Liquidators this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lumber Liquidators currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

DICK’S Sporting Goods, Inc. (DKS - Free Report) currently has an Earnings ESP of +12.14% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +7.01% and a Zacks Rank of 2.

Walmart Inc. (WMT - Free Report) currently has an Earnings ESP of +0.05% and a Zacks Rank of 2.