Shares of furniture maker La-Z-Boy Inc. soared more than 8% Wednesday, after the company posted better-than-expected earnings for its fiscal third quarter to Jan. 27. The company’s adjusted per-share earnings came to 51 cents, as GAAP EPS of 25 cents included a 20 cents charge related to tax reform and a 5 cents charge for a legal settlement. That was ahead of the FactSet consensus of 46 cents. Sales rose 6% to $413.6 million, ahead of the $401 million consensus. “Margins were negatively impacted by rising raw material costs in November and December before a price increase began offsetting the inflation for January deliveries,” said analysts at Stifel. “The price increase is expected to offset the inflation moving forward and the company does not expect additional margin pressure.” Shares have gained 6% in the last 12 months, while the S&P 500 has gained 16%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News