La-Z-Boy Inc. shares rose in the extended session Tuesday after the recliner and furniture maker’s quarterly results and outlook outpaced Wall Street estimates.
shares surged 9% after hours, following a 0.1% gain in the regular session to close at $28.33.
The company reported fiscal first-quarter net income of $38.5 million, or 89 cents a share, compared with $24.6 million, or 54 cents a share, in the year-ago period. Adjusted earnings, which exclude purchase accounting charges and other items, were 91 cents a share, compared with 55 cents a share in the year-ago quarter.
Revenue rose to $604.1 million from $524.8 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 67 cents a share on revenue of $566.1 million, based on La-Z-Boy’s forecast of $560 million to $575 million.
“We delivered excellent results for the quarter, amidst challenging trends for the global economy and the furniture industry,” said Melinda Whittington, La-Z-Boy’s chief executive, in a statement. “We are focused on navigating the near-term volatile environment with agility, while strengthening our business for the long term with our Century Vision strategy. “
“While we maintain our long-term commitment to steady sales growth and margin progress, we continue to anticipate results may vary significantly during fiscal 2023 as a result of current industry dynamics, as well as macroeconomic and geopolitical uncertainty and its effect on consumer sentiment,” Bob Lucian, La-Z-Boy’s chief financial officer, in a statement.
That said, La-Z-Boy expects second-quarter revenue to be up 2% to 5% from the year-ago quarter, ranging from $590 million to $605 million. Analysts had forecast revenue of $595 million for the second quarter.
As of Tuesday’s close, La-Z-Boy shares are down 22% for the year, compared with a 13% decline on the S&P 500 index