On Feb. 14, La-Z-Boy (NYSE:LZB) released Q3 2006 earnings for the period ended Jan. 28.
- Not much sales growth, and the company just missed analyst estimates.
- Diluted EPS came in at $0.20 per share, down 5% from last year, but ahead of expectations of $0.15.
- Gross margins increased 110 basis points to the highest level since 2000, but operating margins moved in the opposite direction.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
% Change | |
|---|---|---|---|---|
|
Sales |
$503,790 |
$502,323 |
$506,959 |
-0.9% |
|
Net Profit |
-- |
$10,468 |
$11,092 |
-5.6% |
|
EPS |
$0.15 |
$0.20 |
$0.21 |
-4.8% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Gross Margin |
24.64% |
23.54% |
+1.10 |
|
Op. Margin |
3.68% |
3.89% |
-0.21 |
|
Net Margin |
2.08% |
2.19% |
-0.10 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
% Change |
|---|---|---|---|
|
Cash+ ST Invest. |
$20,508 |
$25,994 |
-21.1% |
|
Inventory |
$246,547 |
$272,922 |
-9.7% |
|
Accounts Rec. |
$274,001 |
$278,269 |
-1.5% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
% Change |
|---|---|---|---|
|
Long-Term Debt |
$193,978 |
$229,158 |
-15.4% |
|
Accounts Pay. |
$77,479 |
$72,618 |
+6.7% |
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
% Change | |
|---|---|---|---|
|
Cash From Ops |
$33,082 |
$37,980 |
-12.9% |
|
Capital Expend. |
$6,196 |
$9,833 |
-37.0% |
|
Free Cash Flow |
$26,886 |
$28,147 |
-4.5% |
Find out why Fools always follow the money.
Related Companies:
- Ethan Allen (NYSE:ETH)
- Herman Miller (NASDAQ:MLHR)
- Hooker Furniture (NASDAQ:HOFT)
- Kimball International (NASDAQ:KBALB)
- Stanley Furniture (NASDAQ:STLY)
Related Foolishness:
- Foolish Forecast: La-Z-Boy Out for a Stroll
- La-Z-Boy Gets off the Couch
- La-Z-Boy's Uncomfortable Warnings
La-Z-Boy is an official Motley Fool Income Investor selection. Stanley Furniture and Hooker Furniture are Motley Fool Hidden Gems picks.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool analyst Andy Cross did not own share in any company mentioned. Fool rules are here.
