Lumber Liquidators Holdings, Inc. (LL), a specialty retailer in home improvement services industry, is set to report its fourth quarter and full-year 2013 results on Feb 19, 2014. Last quarter, it posted a positive surprise of nearly 9.0%. Let us see how things are developing for this announcement.
Growth Factors in the Past Quarter
Lumber Liquidators’ third-quarter 2013 results were impressive owing to increased consumer demand due to an uptick in real estate market.
Earnings Whispers
Our proven model does not conclusively project Lumber Liquidators as likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.
Negative Zacks ESP: ESP for Lumber Liquidators is -2.78%. This is because the Most Accurate estimate and the Zacks Consensus Estimate stands at 70 cents and 72 cents, respectively.
Zacks Rank #3 (Hold). Lumber Liquidators’ Zacks Rank #3 when combined with negative ESP makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:
Columbia Sportswear Company (COLM) with an Earnings ESP of 3.37% and a Zacks Rank #2 (Buy).
Jack in the Box Inc. (JACK) with an Earnings ESP of 4.62% and a Zacks Rank #3 (Hold).
Liberty Media Corporation (LMCA) with an Earnings ESP of 62.96% and a Zacks Rank #3 (Hold).
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