Please ensure Javascript is enabled for purposes of website accessibility

Here's What's Driving Floor & Decor Holdings 15% Higher Today

By Daniel Miller – Nov 1, 2018 at 11:59AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Floor & Decor topped analysts' estimates, boosted guidance, and still has room to grow.

What happened?

Shares of Floor & Decor Holdings Inc. (FND 3.46%), a leading specialty retailer of hard-surface flooring with products including tile, wood, and stone, among others, are surging 15% higher as of 11:33 a.m. EDT after the company released strong third-quarter results and boosted guidance.

So what

Starting from the top, net sales jumped 26% during the third quarter compared to the prior year, slightly topping estimates and reaching $435.9 million. The top-line increase was partially driven by a strong 11.1% gain in comparable-store sales. Adjusted earnings per share checked in at $0.24, ahead of analysts' estimates calling for $0.22 per share and a 41% gain over the prior year's $0.17 result.

Woman walking on hardwood floor.

Image source: Getty Images.

Said Chief Executive Officer Tom Taylor in a press release:

We are very pleased with the Company's strong growth and momentum as we continue to reinforce the strength of our business in the hard surface flooring category. During the third quarter of 2018, we successfully rolled out our Pro Premier Rewards program and opened seven new stores, further expanding our presence across the country. We are excited to bring our innovative product offerings, in-stock inventory, and compelling value proposition to a growing number of both consumers and professional customers.

Now what

It was a strong enough quarter that management upped its full-year guidance. It now expects net income to check in between $1.09 and $1.12 per share, up from the previous guidance between $1.07 and $1.11 per share. This quarter might not be a one-hit wonder, either, as the company has posted nine consecutive years of comparable store growth and intends to grow its store base by roughly 20% annually over the next several years. Management even believes there is potential to hit 400 stores, up from 83 at the end of 2017, which offers investors a solid growth story going forward.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Floor & Decor Holdings Stock Quote
Floor & Decor Holdings
$72.69 (3.46%) $2.43

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.