On Mar 22, 2013, Zacks Investment Research upgraded
Lumber Liquidators Holdings Inc.
) to a Zacks Rank #1 (Strong Buy). Shares of this specialty
retailer of hardwood flooring have amassed an impressive
year-to-date return of 25%.
Why the Upgrade?
Lumber Liquidators has been witnessing rising earnings
estimates owing to better-than-expected fourth-quarter 2012
results, on the back of strategic initiatives undertaken by
management, which include augmenting its top-line performance,
efficient merchandise planning and optimizing its supply
The company declared impressive results on Feb 20, 2013,
wherein earnings of 50 cents a share surpassed the Zacks
Consensus Estimate of 42 cents by 19.1%, and rose 66.7% from the
Lumber Liquidators, which primarily competes with
Lowe's Companies Inc.
The Home Depot Inc.
), outperformed the Zacks Consensus Estimates in 4 straight
quarters by an average of 29.7%. The long-term expected earnings
growth rate for the stock is 15%.
Net sales jumped 20.8% over the prior-year quarter to $210.7
million, and came ahead of the Zacks Consensus Estimate of $197
million. Comparable-store sales grew 13.2%, supported by a 9.1%
rise in the number of customers. Gross margin expanded 360 basis
points to 39.1%, benefiting from lower product costs.
Buoyed by better-than-expected results, management now
projects full-year 2013 net sales in the range of $885 million to
$920 million. Comparable-store net sales are now expected to rise
in the mid-single digits. Earnings are forecasted between $1.90
and $2.15 per share. Currently, Lumber Liquidators expects to
open 25 to 35 new stores over the course of the year.
The Zacks Consensus Estimate for 2013 rose 7% to $2.15 per
share over the last 60 days. For 2014, the Zacks Consensus
Estimate advanced 4.9% over the same timeframe to $2.56 per
HOME DEPOT (HD): Free Stock Analysis Report
LUMBER LIQUIDAT (LL): Free Stock Analysis
LOWES COS (LOW): Free Stock Analysis Report
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