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 Lumber Liquidators (LL -1.32%) were ending up on the shop floor today, finishing down 14% after posting a disappointing outlook in its quarterly report.
So what: The wood-flooring specialist issued an updated EPS outlook for the current year of $2.72-$2.75, against estimates of $2.76, while its fourth-quarter outlook was $0.69-$0.72, below the consensus. For 2014, it sees EPS of $3.25-$3.60, versus estimates of $3.50. Sales projections for both this year and next were within range of estimates.
Now what: Investors seem to be reacting to the dialed-down estimates for the current quarter and year, though the top end of the guided range is only a penny below estimates. Shares of Lumber Liquidators have eased down from highs than year on short-selling by Whitney Tilson and an investigation by federal authorities into its wood sourcing. Still, with a brisk expansion and solid growth in organic sales, the company looks poised to grow into its lofty valuation.
