La-Z-Boy (LZB) got here out with quarterly earnings of $0.82 per share, beating the Zacks Consensus
La-Z-Boy (LZB) got here out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.52 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 64%. 1 / 4 in the past, it was anticipated that this furnishings firm would submit a lack of $0.26 per share when it truly produced earnings of $0.18, delivering a shock of 169.23%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 4 instances.
La-Z-Boy, which belongs to the Zacks Furnishings business, posted revenues of $459.12 million for the quarter ended October 2020, surpassing the Zacks Consensus Estimate by 6.30%. This compares to year-ago revenues of $447.21 million. The corporate has topped consensus income estimates two instances during the last 4 quarters.
The sustainability of the inventory’s rapid worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
La-Z-Boy shares have added about 19.4% for the reason that starting of the yr versus the S&P 500’s achieve of 12.3%.
What’s Subsequent for La-Z-Boy?
Whereas La-Z-Boy has outperformed the market thus far this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis reveals a powerful correlation between near-term inventory actions and developments in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable monitor report of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for La-Z-Boy was unfavorable. Whereas the magnitude and course of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You possibly can see the entire listing of in the present day’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.87 on $515.95 million in revenues for the approaching quarter and $2.14 on $1.67 billion in revenues for the present fiscal yr.
Buyers ought to be aware of the truth that the outlook for the business can have a cloth impression on the efficiency of the inventory as properly. By way of the Zacks Business Rank, Furnishings is presently within the high 40% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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