La-Z-Boy Incorporated Just Recorded A 24% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in La-Z-Boy Incorporated (NYSE:LZB) had a good week, as its shares rose 2.5% to close at US$32.76 following the release of its third-quarter results. Revenues were US$476m, approximately in line with what analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.74, an impressive 24% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.

Check out our latest analysis for La-Z-Boy

Taking into account the latest results, the most recent consensus for La-Z-Boy from four analysts is for revenues of US$1.87b in 2021, which is a modest 4.7% increase on its sales over the past 12 months. Statutory earnings per share are expected to leap 47% to US$2.41. In the lead-up to this report, analysts had been modelling revenues of US$1.88b and earnings per share (EPS) of US$2.40 in 2021. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$37.33, suggesting that the company has met expectations in its recent result. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. The most optimistic La-Z-Boy analyst has a price target of US$36.00 per share, while the most pessimistic values it at US$33.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. Next year brings more of the same, according to analysts, with revenue forecast to grow 4.7%, in line with its 4.8% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the are forecast to see their revenues grow 5.6% per year. So although La-Z-Boy is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall market. The consensus price target held steady at US$37.33, with the latest estimates not enough to have an impact on analysts' estimated valuations.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for La-Z-Boy going out to 2024, and you can see them free on our platform here.

We also provide an overview of the La-Z-Boy Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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