Why Lumber Liquidators' Shares Soared (LL)

Why Lumber Liquidators' Shares Soared

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of flooring specialist Lumber Liquidators (NYSE: LL ) were looking solid today, rising 27% after the company announced second-quarter results.

So what: Revenue for the quarter jumped 20% from last year to $210 million on comparable-store sales growth of 12.4%. Net income more than doubled and earnings per share clocked in at $0.43. Wall Street analysts were looking for $0.29 in per-share earnings on $197 million in revenue. Investors likely appreciated CEO Robert Lynch's assessment that customer demand was "consistently strong" as the company drove the strong quarterly results through market-share gains and margin expansion.

Now what: The good times aren't expected to end yet, either. Thanks to the results so far this year, along with "current trends," management boosted its full-year outlook. Revenue is now expected to be between $750 million and $775 million for 2012. The high end of the previous forecast was $750 million. Earnings per share, meanwhile, are seen coming in between $1.30 and $1.42. Before the earnings announcement, analysts had been projecting just $1.24.

No wonder investors are giddy over Lumber Liquidators today.

Want to keep up to date on Lumber Liquidators? Add it to your Watchlist.

More Expert Advice from The Motley Fool

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

The Motley Fool owns shares of Lumber Liquidators Holdings. Motley Fool newsletter services have recommended buying shares of Lumber Liquidators Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.