La-Z-Boy stock is jumping on high earnings and an optimistic outlook – watch this price level

Shares of furniture maker La-Z-Boy (LZB) jumped more than 9% ahead of Tuesday’s opening bell after the company allayed investor concerns about slowing consumer spending and a sluggish housing market by announcing quarterly results and the above sales forecasts ahead of analyst expectations.

For the quarter ending April 27, the Monroe, Mich.-based company reported adjusted earnings of 95 cents per share, easily topping the consensus estimate of 70 cents per share. Revenue for the period fell 1% to $554 million, but easily beat expectations of $516.4 million.

Turning to future guidance, La-Z-Boy stated that net sales will be between $475 million and $495 million for the current quarter, with the midpoint of that forecast being $485 million above the estimate of $476 million.

Chief executive Melinda Whittington said the company’s conversion rates were at an all-time high and average ticket and design sales were trending upwards over the year, even as the furniture industry faces challenges from high interest rates and real estate turnover in a housing market at an all-time low. three decades. Whittington added that she expects industry fundamentals to remain unstable for the foreseeable future, but predicts La-Z-Boy will outperform its competitors and gain market share.

The company said it expects fiscal 2025 sales growth to be driven by its Century Vision strategy, which includes opening 12 to 15 new La-Z-Boy Furniture Galleries stores, primarily in the second half of the year.

Monitor this level for profit-based purchases

La-Z-Boy stock has been trading within a broad rising wedge since early last year, with the 200-day moving average sitting just above the formation’s lower trend line, providing additional support during a pullback. Following on from the company’s quarterly results, the stock formed a bullish pattern near the lower wedge trendline on above-average volume, indicating a potential return to the upside. Indeed, the stock is in a position to open much higher on Tuesday morning.

Looking ahead, investors should monitor the $41 level – an area on the chart where price could face selling pressure near the top of the rising wedge trend line. A break above this key level, supported by volume, could see the long-term uptrend accelerate.

La-Z-Boy shares rose 9.1% to $37.20 about two hours before Tuesday’s opening bell.

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