Top-Line Data Is Critical For Lumber Liquidators, Says Morgan Stanley

Loading...
Loading...
Morgan Stanley issued a company update on
Lumber Liquidators Holdings IncLL
after the company reported first quarter sales that were "better than feared." Morgan Stanley rates Lumber Liquidators as Equal-Weight while a price target was unavailable. Analysts Simeon Gutman and Joshua Siber wrote, "While near term (Q1 & Q2) earnings will be weaker than expected, that the top-line trajectory of the business seems to be holding together in the face of significant product quality allegations is the more important story line." Total laminate sales were the hardest hit product segment, declining 19 percent, as they are the focal point of product quality scrutiny. Because the second quarter is seasonally a busier time for flooring and open orders totaled $46.4 million at the end of March, analysts believe that second quarter sales could be stronger than current estimates. However, because the lumber company is running extensive promotions, gross margins and earnings will be hurt in the near term. Shares of Lumber Liquidators closed Thursday at $33.20.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorAnalyst RatingsJoshua SiberMorgan StanleySimeon Gutman
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...