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What's in the Offing for Lumber Liquidators' (LL) Q3 Earnings?

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Zacks Equity Research
·3 min read
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Lumber Liquidators Holdings, Inc. LL is slated to report third-quarter 2020 results on Nov 2. Notably, the company has a trailing four-quarter earnings surprise of 432.5%, on average. In the last reported quarter, it delivered an earnings surprise of 150%.

The Zacks Consensus Estimate for earnings in the third quarter is pegged at 26 cents, indicating a surge of 225% from 8 cents reported in the year-ago quarter. We note that the consensus mark has moved north by 2 cents in the past 30 days. Further, the consensus mark for revenues currently stands at $285.7 million, suggesting an increase of roughly 8.2% from the year-ago quarter’s reported figure.

Factors at Play

Lumber Liquidators has been gaining from increased focus on omnichannel capabilities, including buy online and pick up in store services, as more and more consumers are shifting to the online mode of shopping in response to the COVID-19 situation. Online shopping has led to the increased usage of its Floor Finder and Picture It! tools. Also, virtual sales consultation is now available at many stores, wherein customers can virtually explore the showroom and purchase products. Apart from these, strength in the vinyl category bodes well, driven by the recent expansion in vinyl-based product offerings. Such endeavors are likely to get reflected on third-quarter results.

However, the company is reeling under sluggish demand in the pro business, stemming from the COVID-19 impacts. Further, a decline in installation services is likely to have affected the company’s top line in the third quarter.

Lumber Liquidators Holdings, Inc Price and EPS Surprise

Lumber Liquidators Holdings, Inc Price and EPS Surprise
Lumber Liquidators Holdings, Inc Price and EPS Surprise

Lumber Liquidators Holdings, Inc price-eps-surprise | Lumber Liquidators Holdings, Inc Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Lumber Liquidators this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lumber Liquidators has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of +11.54%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Lowes Companies Inc. LOW has an Earnings ESP of +2.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Target Corporation TGT has an Earnings ESP of +11.29% and a Zacks Rank #2.

The Home Depot Inc. HD has an Earnings ESP of +2.03% and a Zacks Rank #3.

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