Earnings Miss: La-Z-Boy Incorporated Missed EPS By 8.3% And Analysts Are Revising Their Forecasts

La-Z-Boy Incorporated (NYSE:LZB) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. La-Z-Boy missed analyst forecasts, with revenues of US$500m and statutory earnings per share (EPS) of US$0.66, falling short by 4.3% and 8.3% respectively. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for La-Z-Boy

Taking into account the latest results, La-Z-Boy's three analysts currently expect revenues in 2025 to be US$2.07b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 8.0% to US$2.98. In the lead-up to this report, the analysts had been modelling revenues of US$2.13b and earnings per share (EPS) of US$3.17 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

What's most unexpected is that the consensus price target rose 10% to US$43.00, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the La-Z-Boy's past performance and to peers in the same industry. 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 0.6% growth on an annualised basis. This is compared to a historical growth rate of 7.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that La-Z-Boy is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for La-Z-Boy. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for La-Z-Boy going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for La-Z-Boy you should know about.

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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.