Earnings Preview: La-Z-Boy

| About: La-Z-Boy Incorporated (LZB)

Company Profile

La-Z-Boy Inc. (NYSE:LZB) manufactures, markets, imports, distributes, and retails upholstery products, accessories, and casegoods furniture products under the La-Z-Boy brand name in the United States and Canada. It operates in three segments: the upholstery group, casegoods group, and retail group.

La-Z-Boy Incorporated is scheduled to report its fourth-quarter earnings results on June 19, 2012, after the market close.

Technical Overview

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La-Z-Boy has a market cap of $714.33 million and is currently trading around $13.81, with a 52-week range of $6.76 to $16.43. The stock has 16.05% price performance for 2012. The following table provides key financial ratios for La-Z-Boy:

Key Ratio Value
Current Ratio 3.5
PEG 2.35
P/E 9.39
Forward P/E 14.69
Profit Margin 6.08%
Return On Assets (ROA) 12.03%
Return On Equity (ROE) 19.58%

Recent News

  • On March 14, 2012, La-Z-Boy and Kuka Home -- one of China's largest upholstery producers and retailers, with more than 1,600 stores throughout China -- announced a strategic partnership to develop the La-Z-Boy brand in mainland China. The partnership will focus on developing, manufacturing, distributing and retailing La-Z-Boy products, leveraging both companies' strengths and meeting the needs of Chinese consumers.
  • On March 7, 2012, La-Z-Boy reported that it expects to receive a distribution of approximately $16 million in connection with anti-dumping duties that were withheld earlier.
  • On March 26, 2012, La-Z-Boy announced the launch of PowerReclineXR by La-Z-Boy, the latest innovation in reclining; PowerReclineXR offers completely customized movement for the ultimate in seating comfort.

Analyst Guidance and Earnings History

The fourth-quarter revenues are expected to be $333.72 million when compared to $338.90 million for the same quarter last year. Earnings per share for the fourth quarter are expected to be 26 cents, up from 24 cents in the year-ago period.

The average price target from analysts for La-Z-Boy is $17.67, with an average rating of Overweight. Out of the last four quarters, La-Z-Boy has met or exceeded the EPS estimates three times. The following chart shows the analyst estimates history and the actual EPS results:

The following chart shows the annual summary of sales and net income for La-Z-Boy:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz, and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in LZB over the next 72 hours. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.