Sidoti Issues Negative Outlook for La-Z-Boy Earnings

Key Points

• Sidoti lowered its La-Z-Boy earnings forecasts, cutting Q2 2027 EPS to $0.48 from $0.73 and FY2027 EPS to $2.55. The revisions reflect expectations for weaker profitability than previously projected.
• La-Z-Boy’s latest quarterly results missed expectations: EPS was $0.43 versus $0.49 forecast, while revenue of $475.7 million fell short of the $501.4 million consensus and declined 3.4% year over year.
• Despite the earnings concerns, analysts maintain a “Moderate Buy” consensus with an average price target of $39.50; the company also declared a quarterly dividend of $0.242, implying a 2.9% annualized yield.

La-Z-Boy Incorporated (NYSE:LZB - Free Report) - Equities researchers at Sidoti cut their Q2 2027 earnings per share estimates for shares of La-Z-Boy in a report issued on Wednesday, August 19th. Sidoti analyst A. Lebiedzinski now expects that the company will earn $0.48 per share for the quarter, down from their prior estimate of $0.73. The consensus estimate for La-Z-Boy's current full-year earnings is $2.88 per share. Sidoti also issued estimates for La-Z-Boy's Q3 2027 earnings at $0.59 EPS, Q4 2027 earnings at $1.04 EPS, FY2027 earnings at $2.55 EPS and Q2 2028 earnings at $0.58 EPS.

Several other analysts have also recently weighed in on the stock. Weiss Ratings upgraded shares of La-Z-Boy from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, July 1st. Wall Street Zen cut La-Z-Boy from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Finally, KeyCorp lowered their price target on La-Z-Boy from $46.00 to $40.00 and set an "overweight" rating on the stock in a research report on Thursday. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, La-Z-Boy has a consensus rating of "Moderate Buy" and an average target price of $39.50.

La-Z-Boy Trading Down 0.8%

Shares of LZB opened at $33.63 on Friday. The stock has a 50-day moving average price of $39.82 and a 200-day moving average price of $36.87. The company has a market cap of $1.35 billion, a PE ratio of 17.07, a price-to-earnings-growth ratio of 1.07 and a beta of 1.27. La-Z-Boy has a 12-month low of $29.03 and a 12-month high of $44.90.

La-Z-Boy (NYSE:LZB - Get Free Report) last posted its earnings results on Tuesday, August 18th. The company reported $0.43 earnings per share for the quarter, missing analysts' consensus estimates of $0.49 by ($0.06). The firm had revenue of $475.69 million for the quarter, compared to the consensus estimate of $501.44 million. La-Z-Boy had a return on equity of 11.79% and a net margin of 3.86%.The business's revenue was down 3.4% on a year-over-year basis. During the same period last year, the company posted $0.47 EPS.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in La-Z-Boy during the 2nd quarter valued at about $265,535,000. Vanguard Group Inc. lifted its position in La-Z-Boy by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 4,814,114 shares of the company's stock valued at $179,422,000 after acquiring an additional 38,513 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in La-Z-Boy by 1.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,694,255 shares of the company's stock valued at $86,594,000 after purchasing an additional 38,870 shares during the last quarter. Franklin Resources Inc. increased its holdings in shares of La-Z-Boy by 24.0% in the 4th quarter. Franklin Resources Inc. now owns 1,851,873 shares of the company's stock worth $69,019,000 after purchasing an additional 358,945 shares in the last quarter. Finally, LSV Asset Management raised its stake in shares of La-Z-Boy by 0.8% in the fourth quarter. LSV Asset Management now owns 1,476,882 shares of the company's stock worth $55,043,000 after purchasing an additional 11,983 shares during the last quarter. Institutional investors own 99.62% of the company's stock.

Insider Activity at La-Z-Boy

In related news, VP Raphaell Z. Richmond sold 13,671 shares of La-Z-Boy stock in a transaction on Monday, June 29th. The shares were sold at an average price of $39.83, for a total value of $544,515.93. Following the transaction, the vice president owned 51,695 shares in the company, valued at $2,059,011.85. This trade represents a 20.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Jennifer Lynn Mccurry sold 3,715 shares of La-Z-Boy stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $41.05, for a total value of $152,500.75. Following the completion of the transaction, the chief accounting officer owned 16,763 shares in the company, valued at approximately $688,121.15. This represents a 18.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 66,299 shares of company stock worth $2,677,491 in the last 90 days. Corporate insiders own 3.12% of the company's stock.

La-Z-Boy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Thursday, September 3rd will be paid a $0.242 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $0.97 dividend on an annualized basis and a dividend yield of 2.9%. La-Z-Boy's dividend payout ratio is 39.27%.

Key Stories Impacting La-Z-Boy

Here are the key news stories impacting La-Z-Boy this week:

• Positive Sentiment: La-Z-Boy’s retail segment reportedly delivered 16% sales growth, while the company plans to return approximately $35 million to shareholders. Management also projects second-quarter sales of $500 million to $520 million and is investing in supply-chain capacity and retail expansion. La-Z-Boy’s retail momentum offset by wholesale numbers in Q1 La-Z-Boy expects Q2 sales of $500M-$520M
• Neutral Sentiment: La-Z-Boy’s current valuation is moderate at roughly 17 times earnings, but investors are weighing that valuation against slowing results and reduced profit forecasts.
• Negative Sentiment: The company reported quarterly EPS of $0.43, below the $0.49 consensus estimate, while revenue of $475.7 million missed the $501.4 million forecast and declined 3.4% year over year. Retail strength was offset by weaker wholesale performance. La-Z-Boy Q1 2027 earnings call transcript
• Negative Sentiment: Sidoti cut its FY2027 EPS forecast to $2.55 from $2.66, reduced FY2028 EPS to $3.00 from $3.32, and lowered estimates for multiple quarters. The largest reductions include Q2 2027 EPS to $0.48 from $0.73 and Q2 2028 EPS to $0.58 from $0.87. These revisions signal weaker expected profitability than previously anticipated.
• Negative Sentiment: Analysts characterized the first-quarter results and forward guidance as disappointing, contributing to a selloff of nearly 20% after the release and a cautious “Hold” view. La-Z-Boy Q1: Sitting Out The Pullback, Shares a Hold

About La-Z-Boy

La-Z-Boy Incorporated NYSE: LZB is a leading U.S. manufacturer and marketer of residential furniture, best known for its upholstered recliners, sofas, stationary chairs and sleeper sofas. The company offers a broad range of products in both fabric and leather, complemented by occasional tables, desks, lamps and other home furnishings through its branded retail network.

Founded in 1927 by cousins Edward Knabusch and Edwin Shoemaker in Monroe, Michigan, La-Z-Boy pioneered the modern reclining chair.

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