In This Article:
Last week, you might have seen that La-Z-Boy Incorporated (NYSE:LZB) released its quarterly result to the market. The early response was not positive, with shares down 3.7% to US$44.58 in the past week. Results were roughly in line with estimates, with revenues of US$522m and statutory earnings per share of US$0.68. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for La-Z-Boy
Taking into account the latest results, the current consensus from La-Z-Boy's three analysts is for revenues of US$2.17b in 2026. This would reflect a reasonable 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 9.1% to US$3.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.18b and earnings per share (EPS) of US$3.39 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
Despite cutting their earnings forecasts,the analysts have lifted their price target 7.0% to US$46.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that La-Z-Boy's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.0% growth on an annualised basis. This is compared to a historical growth rate of 5.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than La-Z-Boy.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.