July 25, 2012
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.