Lumber Liquidators Earnings Preview

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Lumber Liquidators (NYS: LL) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings on Wednesday, April 25. Lumber Liquidators is a specialty retailer of hardwood flooring in the United States.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on Lumber Liquidators as four analysts rate it a buy and only one analyst rates it as a sell. Analysts like Lumber Liquidators better than competitor Builders FirstSource overall. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $176.6 million in revenue this quarter. That would represent a rise of 10.6% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.25 per share. Estimates range from $0.23 to $0.28.

What our community says:
CAPS All-Stars are in strong support of the stock, with 95.9% awarding it an outperform rating. The greater community is in line with the All-Stars, as 95.5% give it a rating of outperform. The two posts Fools have logged over the past month reveal that they are keen on Lumber Liquidators. Even with a robust four out of five stars, Lumber Liquidators' CAPS rating falls a little short of the community's upbeat outlook.


Management:
Lumber Liquidators' profit has risen year over year by an average of 10.3% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's get some insight into how efficient management is at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. Lumber Liquidators' net margins, which reflect what percentage of each dollar earned by the company becomes profit, have increased for the last two quarters year over year. See how Lumber Liquidators has been doing for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

35.5%

35.6%

34%

36.2%

Operating Margin

7.7%

6.3%

4.9%

5.8%

Net Margin

4.8%

3.9%

3.0%

3.6%

For all our Lumber Liquidators-specific analysis, including earnings and beyond, add Lumber Liquidators to My Watchlist.

The Motley Fool owns shares of Lumber Liquidators Holdings. Motley Fool newsletter services have recommended buying shares of Lumber Liquidators Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

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