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La-Z-Boy Incorporated (NYSE:LZB): Poised For Long Term Success?

Simply Wall St

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As La-Z-Boy Incorporated (NYSE:LZB) released its earnings announcement on 27 April 2019, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 47% in the upcoming year relative to the past 5-year average growth rate of 7.0%. Currently with trailing-twelve-month earnings of US$68m, we can expect this to reach US$101m by 2020. Below is a brief commentary around La-Z-Boy's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

View our latest analysis for La-Z-Boy

How will La-Z-Boy perform in the near future?

The view from 4 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of LZB's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

NYSE:LZB Past and Future Earnings, July 17th 2019

From the current net income level of US$68m and the final forecast of US$128m by 2022, the annual rate of growth for LZB’s earnings is 13%. EPS reaches $2.76 in the final year of forecast compared to the current $1.46 EPS today. In 2022, LZB's profit margin will have expanded from 3.9% to 6.3%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For La-Z-Boy, I've put together three relevant factors you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is La-Z-Boy worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether La-Z-Boy is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of La-Z-Boy? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.