The Gory Details on La-Z-Boy's Double Miss

La-Z-Boy (NYS: LZB) filed its 10-K on June 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q4), La-Z-Boy missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share increased significantly.


Gross margins dropped, operating margins improved, net margins expanded.

Revenue details
La-Z-Boy recorded revenue of $327.4 million. The five analysts polled by S&P Capital IQ expected net sales of $334.4 million on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $338.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.18. The five earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS of $0.36 for Q4 were 89% higher than the prior-year quarter's $0.19 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.6%, 30 basis points worse than the prior-year quarter. Operating margin was 5.2%, 30 basis points better than the prior-year quarter. Net margin was 6.0%, 300 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $291.8 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $1.29 billion. The average EPS estimate is $0.82.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 125 members out of 277 rating the stock outperform, and 152 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give La-Z-Boy a green thumbs-up, and 60 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 $17.25.

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The article The Gory Details on La-Z-Boy's Double Miss originally appeared on Fool.com.

Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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