What Happened:
Shares of furniture company La-Z-Boy (NYSE:LZB) jumped 19.6% in the morning session after the company reported first quarter results which blew past analysts' EPS expectations. Its operating margin also outperformed Wall Street's estimates.
Looking ahead, the company guided next quarter's revenue above expectations and added that "Our first quarter is off to a good start and we are encouraged by our solid Memorial Day results as we believe our assortment and best-in-class motion offerings are resonating with consumers in the marketplace". Zooming out, we think this was a fantastic quarter that should have shareholders cheering.
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What is the market telling us:
La-Z-Boy's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. But moves this big are very rare even for La-Z-Boy and that is indicating to us that this news had a significant impact on the market's perception of the business.
La-Z-Boy is up 9.9% since the beginning of the year. Investors who bought $1,000 worth of La-Z-Boy's shares 5 years ago would now be looking at an investment worth $1,356.
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