La-Z-Boy, Lowe's Slide on Earnings Misses

The furniture maker and home improvement company failed to meet expectations

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Aug 23, 2017
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Among the actively trading stocks today are Advanced Micro Devices Inc. (AMD, Financial), Bank of America Corp. (BAC, Financial), General Electric Co. (GE, Financial), Micron Technology Inc. (MU, Financial), Ford Motor Co. (F, Financial), Apple Inc. (AAPL, Financial) and Intel Corp. (INTC, Financial). La-Z-Boy Inc.Ă‚ (LZB, Financial) and Lowe's Companies Inc. (LOW, Financial), who posted weaker-than-expected earnings for the quarter, are trading lower.

Shares of La-Z-Boy were down about 20% in morning trading on the back of the company´s weak quarterly results. Earnings per share of 21 cents and revenue of $357.1 million came short of expectations by eight cents and $2.24 million, respectively.

Sales for the quarter grew 4.8% from $340.8 million a year ago. Net income of $11.7 million, or 24 cents per share, declined from $13.8 million, or 28 cents per share, in the year-ago quarter.

“After a strong finish to fiscal 2017, we are disappointed with our start to this fiscal year," Kurt L. Darrow, chairman, president and CEO, said. "Although we posted a consolidated sales increase for the quarter, much of it related to acquired sales which did not add volume to our upholstery manufacturing operations which is our most profitable segment.”

After Lowe's reported adjusted earnings and revenue that missed estimates, the stock fell in Wednesday morning trading. Adjusted EPS of $1.57 missed expectations by four cents while revenue of $19.5 billion missed estimates by $30 million. Although the company’s revenue for the second quarter increased 6.8% year over year, it lowered its full-year earnings guidance.

Disclosure: The author holds no positions in any stocks mentioned.