Shares of La-Z-Boy Incorporated surged in Wednesday’s pre-market trading after delivering better-than-expected quarterly results.
The American furniture manufacturer rocketed 10.25% or 2.33 points to $25.06 per share. It completely reversed the previous downturn of 1.98% or 0.46 points to $22.73 per share.
Accordingly, the after-hours movement could add $100.71 million to the company’s stock valuation.
La-Z-Boy’s fiscal fourth-quarter earnings surpassed analysts’ estimates on both the top and bottom lines.
The company reported earnings of $1.33 per share, above the market estimate of $0.92. The latest figure also exceeded the $0.81 EPS in the year-ago quarter.
In addition, La-Z-Boy’s revenue advanced 32.00% to a record-high of $684.60 million, above the forecasted $664.90 million.
It explained that the gains benefitted from the strong demand for furnishings, which helped support price increases and margins. The record sales also help to limit the impact of significant global supply chain challenges.
Moreover, operating margin inched up to 11.50% from 9.60% in the same period last year. Meanwhile, the raw material inflation and plant inefficiencies related to increasing manufacturing capacity kept a lid on gains.
Before the post-trading, shares of La-Z-Boy declined 38.10% or 13.99 since the start of the year.
La-Z-Boy forecasts $560.00M fiscal Q1 sales
Looking ahead to the fiscal first quarter, La-Z-Boy sees sales in the range of $560.00 million to $575.00 million. Correspondingly, this projection came in higher than the analysts’ estimates of $554.20 million.
The business stated that they anticipate a robust balance sheet and significant backlog in the current quarter.
Subsequently, this foothold will allow the company to progress amid the uncertain economic factors. It dutifully noted that macroeconomic and supply chain issues will persist this year.
At the same time, La-Z-Boy plans to make important investments for the future of the company. This move would deliver significant returns to all stakeholders.