The 10-second takeaway
For the quarter ended Jan. 26 (Q3), La-Z-Boy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Margins grew across the board.
La-Z-Boy booked revenue of $349.1 million. The five analysts polled by S&P Capital IQ anticipated revenue of $337.7 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $316.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The five earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. GAAP EPS of $0.32 for Q3 were 14% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.5%, 100 basis points better than the prior-year quarter. Operating margin was 6.7%, 130 basis points better than the prior-year quarter. Net margin was 4.9%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $353.0 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $1.31 billion. The average EPS estimate is $0.73.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 117 members out of 262 rating the stock outperform, and 145 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give La-Z-Boy a green thumbs-up, and 48 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 $18.75.
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