La-Z-Boy Incorporated (NYSE:LZB)
La-Z-Boy Incorporated (LZB), a global furniture products company yesterday reported their fiscal fourth quarter 2017 financial results. The company reported fourth quarter profits of $28 million.
LZB reported fourth quarter earnings of $0.57 per share which beat analyst expectations of $0.46 per share. La-Z-Boy reported fourth quarter revenues of $412.7 million which beat analyst expectations of $401.1 million
La-Z-Boy Incorporated CEO’s Comments
Kurt L. Darrow, Chairman, President and Chief Executive Officer of La-Z-Boy, said, “We delivered a strong finish to fiscal 2017 with our earnings performance demonstrating the increasing traction and momentum of our ongoing strategic initiatives and results of our ability to leverage operating platform efficiencies. In fiscal 2017, we increased our gross margin, recorded our highest consolidated operating margin in more than a decade, and generated $146.2 million in cash from operating activities. Throughout fiscal 2017, we made strategic investments to drive long-term growth, returned $57 million to shareholders through dividends and share purchases, and ended the year with a strong balance sheet. As we begin fiscal 2018, we are well positioned to make the ongoing investments necessary to compete and win in a dynamic marketplace and drive sustainable profitability and returns to shareholders.” Globe Newswire
LZB Technical Analysis
LZB opened trading yesterday at $27.20 which was down from the previous day’s trading close of $27.25. LZB closed trading yesterday at $26.20 and spiked up after market to $29.50, equivalent to a 13% increase from the closing price. Taking a look at the daily chart we can see the last time LZB traded above these levels we have to go back to February 10th when it traded at $29.66.
Taking a closer look at the daily chart we can see that before the spike up LZB had been in an overall downward trend dating back to December 9th, 2016 when it traded at $32.54. LZB has a float of 47.8 million shares and traded 1.88 times the normal daily trading volume on Tuesday.
For trading purposes, I would like to see LZB open trading on Wednesday above $28.40 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. The company also produces reclining chairs; and manufactures and distributes residential furniture in the United States. It operates through Upholstery, Casegoods, and Retail segments.
The Upholstery segment manufactures or imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas.
This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of Comfort Studios and England custom comfort center locations, dealers, and other independent retailers. The Casegoods segment manufactures, imports, markets, and distributes casegoods furniture, including bedroom sets, dining room sets, entertainment centers and occasional pieces, and upholstered furniture.
This segment sells its products to dealers, La-Z-Boy Furniture Galleries stores, and other independent retailers under the American Drew, Hammary, and Kincaid brand names. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network.
La-Z-Boy Incorporated sells its products through a network of 338 La-Z-Boy Furniture Galleries stores and 559 Comfort Studio locations, as well as in-store programs for its Kincaid and England operating units. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan.