Yahoo Finance La-Z-Boy Incorporated Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
It's been a pretty great week for La-Z-Boy Incorporated (NYSE:LZB) shareholders, with its shares surging 18% to US$40.70 in the week since its latest full-year results. The result was positive overall - although revenues of US$2.0b were in line with what the analysts predicted, La-Z-Boy surprised by delivering a statutory profit of US$2.83 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for La-Z-Boy
Taking into account the latest results, the current consensus from La-Z-Boy's two analysts is for revenues of US$2.09b in 2025. This would reflect a satisfactory 2.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.0% to US$3.01. In the lead-up to this report, the analysts had been modelling revenues of US$2.06b and earnings per share (EPS) of US$2.93 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of US$45.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that La-Z-Boy's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than La-Z-Boy.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around La-Z-Boy's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$45.00, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for La-Z-Boy going out as far as 2027, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for La-Z-Boy that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
