Furniture manufacturer La-Z-Boy Inc. (LZB) Tuesday reported higher profit for the third quarter, helped by a more than 10 percent increase in revenues. The stock climbed over 11 percent in the extended trade.
CEO Kurt Darrow said, "For the quarter, we posted solid increases in same-store written sales for the La-Z-Boy Furniture Galleries network of stores as well as sales increases in our upholstery and retail segments."
Net income rose to $17.06 million or $0.32 per share from $14.96 million or $0.28 per share in the previous year.
The latest results included $0.04 per share relating to gains on the sale of investments and a related tax benefit, while last year $0.07 per share of profit was mainly due to a reduction of certain valuation reserves against the company's deferred tax assets, and $0.02 per share reflected anti-dumping duties received from the CDSOA distributions.
On average, 5 analysts polled by Thomson Reuters expected earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues climbed 10.3 percent to $349.15 million from $316.52 million a year ago. Analysts expected revenues of $337.80 million.
The upholstery segment's sales increased 12.3 percent to $280 million and its operating margin was 10.1 percent compared to 9.1 percent in last year's third quarter.
Same-store written sales for the La-Z-Boy Furniture Galleries store network increased 11.8 percent for the third quarter.
Casegoods segment sales fell around 5 percent to $32.61 million. Retail segment sales were $72.77 million, up around 25 percent from last year.
La-Z-Boy said it is cautiously optimistic as it moves into the fourth quarter, against the backdrop of an improving housing market in a historically strongest volume period for the firm.
The company declared a quarterly cash dividend of $0.04 per common share, payable March 8 to shareholders as of March 1.
LZB rose 0.3 percent to close at $15.46 and added 11.25 percent in the extended session at $17.20.
For comments and feedback: editorial@rttnews.com