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Lifetime Brands (LCUT) Soars 5.9%: Is Further Upside Left in the Stock?

·2 min read

Lifetime Brands (LCUT) shares soared 5.9% in the last trading session to close at $17.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.1% gain over the past four weeks.

Shares of Lifetime Brands have been gaining from optimism surrounding its core business, which in turn has been benefitting from strong demand conditions, product offerings as well as vendor consolidations. Markedly such factors aided the company’s first-quarter 2021 performance, wherein the top and the bottom line not only improved year on year, but also surpassed the Zacks Consensus Estimate. The company’s core U.S. business delivered its seventh straight quarter of year-over-year increase, courtesy of growth across most categories. The company also gained from growth in its international business, in the reported quarter, backed by efforts to boost efficiency.

During the first-quarter, the company posted adjusted earnings of 13 cents per share that comfortably surpassed the Zacks Consensus Estimate of a loss of 23 cents. Total sales were $195.7 million, which came ahead of the Zacks Consensus Estimate of $155 million and increased 34.9% from the year-ago quarter.

Price and Consensus

Price Consensus Chart for LCUT
Price Consensus Chart for LCUT

This kitchen products company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +66.7%. Revenues are expected to be $165.76 million, up 10.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Lifetime Brands, the consensus EPS estimate for the quarter has been revised 150% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LCUT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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