Bull of the Day: La-Z-Boy (LZB) - Bull of the Day
2013年9月19日 - 7:30PM
Zacks
La-Z-Boy (LZB) recently delivered its 3rd consecutive
positive earnings surprise on the back of a stellar 12.7% jump in
same-store written sales for its Furniture Galleries® store
network. This prompted analysts to revise their earnings estimates
meaningfully higher for both this year and next, sending the stock
to a Zacks Rank #1 (Strong Buy).
Based on current consensus estimates, analysts
project 49% earnings growth this year and 21% next year. Given the
strong earnings momentum and growth projections, its forward P/E
multiple of 19 looks reasonable. This leaves plenty of upside for
the stock to continue running higher over the next several
weeks.
La-Z-Boy Incorporated is a residential furniture
maker that markets its products under various brand names including
La-Z-Boy, England, Lea, Kincaid, and American Drew. The company has
a network of 312 La-Z-Boy Furniture Galleries® stores and 567
Comfort Studios® locations, each dedicated to marketing its
La-Z-Boy branded products. The company owns 93 of the La-Z-Boy
Furniture Galleries® stores while the remainder, as well as all 567
Comfort Studios® locations, are independently owned and
operated.
First Quarter Results
La-Z-Boy reported better-than-expected results for
the first quarter of its fiscal 2014 on August 20. The first
quarter is typically a seasonally slow quarter for the company, but
it's results this time were anything but sluggish. Earnings per
share came in at $0.18, beating the Zacks Consensus Estimate by 3
cents. And it was more than double EPS of 8 cents in the same
quarter last year.
Sales rose 6% to $318.9 million. Same-store written
sales for the La-Z-Boy Furniture Galleries® store network jumped an
impressive 12.7%, and that was on top of a 9.2% increase in last
year's first quarter.
Meanwhile, profit margins expanded and operating
income surged 94% as the company leveraged its fixed expenses.
Estimates Rising
Following the Q1 beat, analysts revised their
estimates higher for La-Z-Boy, sending the stock to Zacks Rank #1
(Strong Buy). The Zacks Consensus Estimate for 2013 is now $1.18,
up from $1.14 just 30 days ago. The 2014 consensus is currently
$1.42, up from $1.34 over the same period. Based on consensus
estimates, analysts project 49% earnings growth this year and 21%
growth next year.
You can see the strong increase in consensus
estimates over the last few months in the company's 'Price &
Consensus' chart:
Strong earnings momentum can be seen throughout
'Furniture' industry too. It ranks 13th out of the 265 industries
that Zacks Ranks.
Valuation
La-Z-Boy doesn't look like a screaming value at 19x
12-month forward earnings, but it's not an unreasonable multiple
considering the very strong earnings growth projections. Plus, it's
price-to-sales ratio of 0.9 is a slight discount to the industry
median of 1.0.
The company also pays a dividend that yields
0.7%.
The Bottom Line
With rising estimates, strong growth projections
and reasonable valuation, La-Z-Boy offers investors attractive
upside potential.
Todd Bunton, CFA is the Growth & Income
Stock Strategist for Zacks Investment Research and Editor of the
Income Plus Investor service.
LA-Z-BOY INC (LZB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
La Z Boy (NYSE:LZB)
過去 株価チャート
から 9 2024 まで 10 2024
La Z Boy (NYSE:LZB)
過去 株価チャート
から 10 2023 まで 10 2024