La-Z-Boy Incorporated Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest yearly earnings release from La-Z-Boy Incorporated (NYSE:LZB), an important milestone in the company's journey to build a stronger business. It was not a great result overall. While revenues of US$2.1b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 20% to hit US$2.35 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for La-Z-Boy from three analysts is for revenues of US$2.17b in 2026. If met, it would imply a credible 2.8% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 32% to US$3.21. Before this earnings report, the analysts had been forecasting revenues of US$2.17b and earnings per share (EPS) of US$3.27 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for La-Z-Boy

Despite cutting their earnings forecasts,the analysts have lifted their price target 7.0% to US$46.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. 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 2026 expected to display 2.8% growth on an annualised basis. This is compared to a historical growth rate of 4.7% 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 4.1% per year. 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for La-Z-Boy. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that La-Z-Boy's revenue is expected to perform worse than the wider industry. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for La-Z-Boy going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for La-Z-Boy that you should be aware of.

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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.