Lumber Liquidators Holdings Earnings: Here’s Why the Stock is Rising Now

Lumber Liquidators Holdings, Inc. (NYSE:LL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 12.3%.

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Lumber Liquidators Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 96.55% to $0.57 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Rose 22.53% to $230.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lumber Liquidators Holdings, Inc. reported adjusted EPS income of $0.57 per share. By that measure, the company beat the mean analyst estimate of $0.42. It beat the average revenue estimate of $215.4 million.

Quoting Management: Robert M. Lynch, President and Chief Executive Officer, commented, “Our powerful store model and value proposition continued to drive record results in the first quarter as we entered the important spring home improvement season. As we continued the implementation of our multi-year strategic initiatives, we saw consistent strength during the quarter in our top-line and an expansion of both our gross and operating margins to deliver a solid bottom line. Also during the quarter, we opened our first locations in our “store of the future” format which feature an expanded showroom. Though the results are early, across the five new store openings, four relocations of existing stores and two major remodels completed during the first quarter with the new format, we are pleased with the performance to date.”

Key Stats (on next page)…

Revenue increased 9.37% from $210.66 million in the previous quarter. EPS increased 14% from $0.50 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.54 and has not changed. For the current year, the average estimate has moved up from a profit of $2.02 to a profit of $2.15 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)