La-Z-Boy (NYSE:LZB) Shares Gap Down – Here’s What Happened

Shares of La-Z-Boy Incorporated (NYSE:LZB) gapped down before the market opened on Wednesday . The stock had previously closed at $37.93, but opened at $33.29. La-Z-Boy shares last traded at $35.7150, with a volume of 277,511 shares trading hands.

More La-Z-Boy News

Here are the key news stories impacting La-Z-Boy this week:

• Positive Sentiment: Adjusted results and revenue slightly beat expectations (adjusted EPS $0.61 vs. consensus ~$0.59; revenue ~$542M modestly above estimates), which shows the business is still generating topline growth. La-Z-Boy earnings beat / transcript
• Positive Sentiment: Operational positives: double-digit retail written-sales growth, margin improvement on an adjusted basis, and strong operating cash flow (~$89M for the quarter), supporting near-term liquidity. GlobeNewswire press release
• Positive Sentiment: Board declared a quarterly dividend of $0.242 per share (annualized yield ~2.7%), which may support investor income demand.
• Neutral Sentiment: Strategic portfolio actions: the company completed the sale of Kincaid, announced plans to sell wholesale casegoods brands and will close a U.K. manufacturing facility — moves that could simplify the business and raise proceeds but have transitional costs. Strategic initiatives / divestitures
• Neutral Sentiment: Analyst and institutional activity is mixed (some buy coverage remains, while several large holders trimmed positions last quarter), so conviction among investors is varied. QuiverQuant institutional & analyst note
• Negative Sentiment: Disappointing guidance: La‑Z‑Boy updated FY4Q revenue guidance to $560M–$580M, below consensus (~$591M), which is the primary catalyst for the sell-off as it signals weaker near-term demand. Guidance disappointment article
• Negative Sentiment: Weather headwinds and lower GAAP profitability: management warned adverse weather could hurt the current quarter, and GAAP EPS was down year-over-year (reported GAAP EPS $0.52 vs. adjusted $0.61), raising concerns about near-term margin pressure. WSJ: adverse weather warning
• Negative Sentiment: Market reaction and coverage: several outlets flagged the mixed beat-and-guide print and the company’s cautionary outlook as reasons for the share decline; read a quick take on why the stock dropped today. Fool: Why LZB stock dropped

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Sidoti raised shares of La-Z-Boy from a “neutral” rating to a “buy” rating and upped their price target for the company from $36.00 to $39.00 in a research report on Wednesday, November 19th. Zacks Research downgraded La-Z-Boy from a “strong-buy” rating to a “hold” rating in a report on Monday, January 19th. Needham & Company LLC restated a “buy” rating on shares of La-Z-Boy in a research note on Wednesday, December 17th. KeyCorp restated an “overweight” rating on shares of La-Z-Boy in a research note on Wednesday, December 17th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of La-Z-Boy in a report on Monday, December 22nd. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, La-Z-Boy presently has a consensus rating of “Moderate Buy” and an average price target of $42.50.

La-Z-Boy Stock Performance

The company has a market capitalization of $1.45 billion, a PE ratio of 16.10 and a beta of 1.27. The stock’s 50 day moving average is $38.29 and its 200 day moving average is $36.06.

La-Z-Boy (NYSE:LZB) last issued its earnings results on Tuesday, February 17th. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.59 by $0.02. La-Z-Boy had a net margin of 4.29% and a return on equity of 11.19%. The business had revenue of $541.59 million for the quarter, compared to analysts’ expectations of $535.47 million. During the same quarter in the previous year, the firm posted $0.68 EPS. The business’s revenue for the quarter was up 3.8% compared to the same quarter last year. On average, equities research analysts forecast that La-Z-Boy Incorporated will post 2.99 EPS for the current fiscal year.

La-Z-Boy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Tuesday, March 3rd will be issued a $0.242 dividend. This represents a $0.97 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, March 3rd. La-Z-Boy’s dividend payout ratio (DPR) is presently 44.50%.

Institutional Investors Weigh In On La-Z-Boy

A number of institutional investors and hedge funds have recently made changes to their positions in LZB. Franklin Resources Inc. increased its stake in La-Z-Boy by 208.8% in the 3rd quarter. Franklin Resources Inc. now owns 1,492,928 shares of the company’s stock worth $51,237,000 after acquiring an additional 1,009,428 shares during the last quarter. M&T Bank Corp purchased a new stake in La-Z-Boy in the fourth quarter valued at approximately $18,433,000. Goldman Sachs Group Inc. lifted its position in La-Z-Boy by 100.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 627,638 shares of the company’s stock valued at $23,392,000 after purchasing an additional 313,932 shares during the last quarter. Fuller & Thaler Asset Management Inc. grew its stake in La-Z-Boy by 46.3% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 895,003 shares of the company’s stock worth $33,357,000 after buying an additional 283,364 shares in the last quarter. Finally, Qube Research & Technologies Ltd increased its holdings in shares of La-Z-Boy by 64.5% in the 2nd quarter. Qube Research & Technologies Ltd now owns 391,470 shares of the company’s stock worth $14,551,000 after buying an additional 153,498 shares during the last quarter. Hedge funds and other institutional investors own 99.62% of the company’s stock.

About La-Z-Boy

La-Z-Boy Incorporated (NYSE: LZB) is a leading U.S. manufacturer and marketer of residential furniture, best known for its upholstered recliners, sofas, stationary chairs and sleeper sofas. The company offers a broad range of products in both fabric and leather, complemented by occasional tables, desks, lamps and other home furnishings through its branded retail network.

Founded in 1927 by cousins Edward Knabusch and Edwin Shoemaker in Monroe, Michigan, La-Z-Boy pioneered the modern reclining chair.