The 10-second takeaway
For the quarter ended April 27 (Q4), La-Z-Boy met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share shrank.
Gross margins grew, operating margins grew, net margins dropped.
La-Z-Boy notched revenue of $359.5 million. The five analysts polled by S&P Capital IQ expected a top line of $356.9 million on the same basis. GAAP reported sales were 9.8% higher than the prior-year quarter's $327.4 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 $0.30. The five earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. Non-GAAP EPS of $0.30 for Q4 were 67% higher than the prior-year quarter's $0.18 per share. GAAP EPS of $0.33 for Q4 were 8.3% lower than the prior-year quarter's $0.36 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 33.8%, 220 basis points better than the prior-year quarter. Operating margin was 7.3%, 210 basis points better than the prior-year quarter. Net margin was 5.1%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $324.0 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $1.13.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 120 members out of 266 rating the stock outperform, and 146 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give La-Z-Boy a green thumbs-up, and 40 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 $22.00.
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