Lumber Liquidators Shares Crater After Surprise Q3 Loss
Ticker.tv News | Nov 01, 2017 02:36AM ET
Lumber Liquidators Holdings Inc (NYSE:LL)
On Tuesday before the market opened, Lumber Liquidators reported a surprise loss on their third quarter earnings. Earnings per share came out at a loss of 66 cents on $257.2 million in revenues while analyst were looking for $261.8 million.
Same store sales growth was also disappointing coming in at 3.8% versus 5.3% expected from analyst.
This was an unexpected result and investors are showing their concern in the pre-market price action with shares currently trading below $33, dipping below a major support line at $34. Below $34 we don’t have much for support until we get to pre-market lows at $31 and then $30 which is another major support area followed up by the 200-day moving average currently at $28.67.
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If shares try to recover we could see resistance at $34 followed up by the 20-day moving average currently at $35.50. Above that we have $36 and $37 both acting as resistance levels.
Look for shares to be very volatile today on heavy volume with possibly wide spreads, especially at the open.
h3 Company Profile/h3Dennis Knowles, Chief Executive Officer, commented , “We saw continued growth in sales and positive comp store growth for the fifth consecutive quarter. That is despite the unusually severe hurricane season that we believe had a slight negative impact on net sales in some of our stores. A lot of credit should be given to our associates directly impacted by these storms. Their resiliency and commitment were inspiring, and our customers appreciated their responsiveness. We saw gross margin expansion as well as improvement in operating results on an adjusted basis. We remain confident in the long-term strength of our unique business model, our value proposition, and the investments we have made in the capabilities of our people.”
Lumber Liquidators Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hardwood flooring, and hardwood flooring enhancements and accessories.
The company offers hardwood species, engineered hardwood, laminates, and resilient vinyl flooring; renewable flooring, and bamboo and cork products; and a selection of flooring enhancements and accessories, including moldings, noise-reducing underlay, adhesives, and flooring tools under the Bellawood brand and Lumber Liquidators name. It also provides in-home delivery and installation services.
The company primarily serves homeowners, or to contractors on behalf of homeowners. As of December 31, 2016, it operated 383 stores in the United States and 8 stores in Canada. The company also offers its products through its Website, catalogs, and call center. Lumber Liquidators Holdings, Inc. was founded in 1994 and is headquartered in Toano, Virginia.
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