Low Expectations For La-Z-Boy's Q4 Earnings
La-Z-Boy (NYSE: LZB) is expected to post a big charge for its fiscal fourth quarter Tuesday, suggesting a messy first look at its report.
Shares of the furniture-maker traded near a 53-week low Monday, before rebounding to Tuesday's afternoon level of $24.56, up 3.94 percent.
The pending restructuring charge, mainly for shuttering a North Carolina furniture factory, was advertised in April by the company in the range of $13 million to $15 million, or $0.15 to $0.17 per share, with most of it expected in the fourth quarter.
"We have low expectations," Barrington analyst Kristine Koerber said in a research note.
Koerber nonetheless rates the stock a Buy, citing recent price weakness and her expectations for continued gains in gross margin, driven by improved product mix and operating efficiencies.
Analysts on average expect adjusted earnings of $0.32 per share on revenue of $368.12 million. Year-ago earnings were $0.34 per share on revenue of $359.54 million.
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