Does The Street Have La-Z-Boy Figured Out?

La-Z-Boy (NYSE: LZB  ) is expected to report Q2 earnings on Nov. 28. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict La-Z-Boy's revenues will grow 6.1% and EPS will grow 33.3%.

The average estimate for revenue is $326.5 million. On the bottom line, the average EPS estimate is $0.20.

Revenue details
Last quarter, La-Z-Boy chalked up revenue of $301.5 million. GAAP reported sales were 7.6% higher than the prior-year quarter's $280.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.08. GAAP EPS of $0.08 for Q1 were 91% lower than the prior-year quarter's $0.85 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 29.7%, 80 basis points better than the prior-year quarter. Operating margin was 2.5%, 130 basis points better than the prior-year quarter. Net margin was 1.5%, 1,480 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.32 billion. The average EPS estimate is $0.82.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 119 members out of 263 rating the stock outperform, and 144 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give La-Z-Boy a green thumbs-up, and 47 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on La-Z-Boy is outperform, with an average price target of $16.88.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere


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