Lumber Liquidators Holdings Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Lumber Liquidators Holdings (NYS: LL) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Lumber Liquidators Holdings beat expectations on revenues and beat expectations on earnings per share.

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


Margins increased across the board.

Revenue details
 Lumber Liquidators Holdings tallied revenue of $210.3 million. The 12 analysts polled by S&P Capital IQ wanted to see revenue of $196.1 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $175.5 million.

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 $0.43. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.43 for Q2 were 126% higher than the prior-year quarter's $0.19 per share.

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 37.3%, 330 basis points better than the prior-year quarter. Operating margin was 9.4%, 450 basis points better than the prior-year quarter. Net margin was 5.8%, 280 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $184.5 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $755.0 million. The average EPS estimate is $1.22.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 559 members out of 587 rating the stock outperform, and 28 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give Lumber Liquidators Holdings a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lumber Liquidators Holdings is hold, with an average price target of $28.50.

While many retailers continue to struggle in these tough economic time, a select few are changing the face of the business, and reaping outsized rewards. Is Lumber Liquidators Holdings the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.

The article Lumber Liquidators Holdings Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had 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. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement