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In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 39.7% but decreased 4% year over year. Net sales topped the consensus mark by 6.7% but fell 1% from the prior-year level.
La-Z-Boy’s bottom line topped the consensus mark in three of the trailing four quarters and missed once, the average surprise being 15.3%.
Trend in Estimate Revision
The Zacks Consensus Estimate for LZB’s fiscal first-quarter earnings increased from 2 cents to 62 cents over the past 60 days. The estimated figure remains flat from the year-ago earnings.
The consensus mark for net sales is pegged at $486.1 million, indicating year-over-year growth of 0.9%.
Factors to Note
La-Z-Boy’s top and bottom lines are likely to have remained stable in the fiscal first quarter, thanks to its focus on Century Vision strategy, which includes the opening of 12-15 new La-Z-Boy Furniture Galleries stores.
The critical pillar of this expansion involves growing the La-Z-Boy Furniture Galleries network and the company-owned retail segment within that network. This growth will be achieved through the opening of new stores, acquisition of existing ones, and store remodels, all aimed at providing an exceptional end-to-end consumer experience.
However, the company expects the industry to remain challenging, with improved trends occurring late in fiscal 2025. A sluggish housing environment, high interest rates and overall slower industry trends, along with pressurized demand for large ticket discretionary purchases, are major concerns for the company. Also, ongoing near-term macroeconomic uncertainty, along with elevated interest rates and ongoing inflation, are likely to have put pressure on margins.
LZB projects sales to be in the range of $475-495 million in the fiscal first quarter compared with $481.65 million reported a year ago. It also expects adjusted operating margin to be in the range of 6-7%.
Notably, the company’s fiscal first quarter is generally the lowest sales and margin quarter in every fiscal year due to seasonally low industry sales and the annual week-long plant shutdown in July.
The Zacks Consensus Estimate for Wholesale segment sales is currently pegged at $338.5 million, implying growth from $333.5 million a year ago. The same for Retail segment is pegged at $217 million, depicting a rise from $208.2 million a year ago.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for LZB 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. But that’s not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Leggett & Platt, Incorporated (LEG - Free Report) reported lackluster results for second-quarter 2024. Earnings matched the analysts’ expectations, while net sales missed the same. The metrics declined on a year-over-year basis due to persistent weak demand in most of the end markets served.
For the full year, LEG lowered sales guidance and narrowed adjusted EPS guidance. The company noted that demand in the residential end markets remains weak as consumers continue to delay big-ticket, discretionary purchases. Also, the global automotive market remains volatile due to a slower-than-expected shift to electric vehicles and disruption from new Chinese market entrants.
Mohawk Industries, Inc. (MHK - Free Report) reported mixed results for the second quarter of 2024 (ended Jun 29). Its earnings surpassed the Zacks Consensus Estimate and improved year over year.
On the other hand, net sales declined on a year-over-year basis and missed the consensus mark.
American Public Education, Inc. (APEI - Free Report) reported second-quarter 2024, wherein earnings met the Zacks Consensus Estimate and significantly improved from the previous year.
Revenues marginally missed the analysts’ expectations but increased year over year on the back of contributions from the American Public University System, Hondros College of Nursing and Rasmussen University segments. Yet, lower revenues from Graduate School partially offset the growth.
Image: Bigstock
La-Z-Boy (LZB) to Report Q1 Earnings: What's in the Cards?
La-Z-Boy Incorporated (LZB - Free Report) is slated to report its first-quarter fiscal 2025 (ended Jul 27, 2024) results on Aug 20, after market close.
In the last reported quarter, the company’s earnings topped the Zacks Consensus Estimate by 39.7% but decreased 4% year over year. Net sales topped the consensus mark by 6.7% but fell 1% from the prior-year level.
La-Z-Boy’s bottom line topped the consensus mark in three of the trailing four quarters and missed once, the average surprise being 15.3%.
Trend in Estimate Revision
The Zacks Consensus Estimate for LZB’s fiscal first-quarter earnings increased from 2 cents to 62 cents over the past 60 days. The estimated figure remains flat from the year-ago earnings.
La-Z-Boy Incorporated Price and EPS Surprise
La-Z-Boy Incorporated price-eps-surprise | La-Z-Boy Incorporated Quote
The consensus mark for net sales is pegged at $486.1 million, indicating year-over-year growth of 0.9%.
Factors to Note
La-Z-Boy’s top and bottom lines are likely to have remained stable in the fiscal first quarter, thanks to its focus on Century Vision strategy, which includes the opening of 12-15 new La-Z-Boy Furniture Galleries stores.
The critical pillar of this expansion involves growing the La-Z-Boy Furniture Galleries network and the company-owned retail segment within that network. This growth will be achieved through the opening of new stores, acquisition of existing ones, and store remodels, all aimed at providing an exceptional end-to-end consumer experience.
However, the company expects the industry to remain challenging, with improved trends occurring late in fiscal 2025. A sluggish housing environment, high interest rates and overall slower industry trends, along with pressurized demand for large ticket discretionary purchases, are major concerns for the company. Also, ongoing near-term macroeconomic uncertainty, along with elevated interest rates and ongoing inflation, are likely to have put pressure on margins.
LZB projects sales to be in the range of $475-495 million in the fiscal first quarter compared with $481.65 million reported a year ago. It also expects adjusted operating margin to be in the range of 6-7%.
Notably, the company’s fiscal first quarter is generally the lowest sales and margin quarter in every fiscal year due to seasonally low industry sales and the annual week-long plant shutdown in July.
The Zacks Consensus Estimate for Wholesale segment sales is currently pegged at $338.5 million, implying growth from $333.5 million a year ago. The same for Retail segment is pegged at $217 million, depicting a rise from $208.2 million a year ago.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for LZB 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. But that’s not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: La-Z-Boy currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Releases
Leggett & Platt, Incorporated (LEG - Free Report) reported lackluster results for second-quarter 2024. Earnings matched the analysts’ expectations, while net sales missed the same. The metrics declined on a year-over-year basis due to persistent weak demand in most of the end markets served.
For the full year, LEG lowered sales guidance and narrowed adjusted EPS guidance. The company noted that demand in the residential end markets remains weak as consumers continue to delay big-ticket, discretionary purchases. Also, the global automotive market remains volatile due to a slower-than-expected shift to electric vehicles and disruption from new Chinese market entrants.
Mohawk Industries, Inc. (MHK - Free Report) reported mixed results for the second quarter of 2024 (ended Jun 29). Its earnings surpassed the Zacks Consensus Estimate and improved year over year.
On the other hand, net sales declined on a year-over-year basis and missed the consensus mark.
American Public Education, Inc. (APEI - Free Report) reported second-quarter 2024, wherein earnings met the Zacks Consensus Estimate and significantly improved from the previous year.
Revenues marginally missed the analysts’ expectations but increased year over year on the back of contributions from the American Public University System, Hondros College of Nursing and Rasmussen University segments. Yet, lower revenues from Graduate School partially offset the growth.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.