NEW YORK (
) -- Shares of
(LZB - Get Report)
surged Thursday after the furniture seller reported its fiscal second-quarter earnings more than doubled from last year.
The Monroe, Mich.-based company said it earned $7.7 million, or 15 cents a share, in the three months ended Oct. 29 on sales of $307.7 million, up 5% year-over-year. In the same period last year, La-Z-Boy posted a profit of $3.2 million, or 7 cents a share.
The performance in the last quarter was a penny above the consensus estimate of analysts polled by
for earnings of 14 cents a share in the October-ended quarter, although sales fell short of Wall Street's estimate of $310 million.
In addition to increasing profits, La-Z-Boy is also lowering its debt. The company's debt-to-capitalization ratio was 6.8% this quarter, down from 11.6% the prior year.
"While furniture sales remain challenged in the United States, LZB is successfully driving market share gains, which are likely to accelerate as the company begins opening more stores in the coming year," Keybanc analysts said in a research report.
Keybanc kept a buy rating on the stock following the report but lifted its 12-month price target to $13 from $10.
Shares of La-Z-Boy, one of the best performers on the New York Stock Exchange during Thursday's regular session, closed up nearly 17% at $11.57 on volume of 3.1 million, more than five times the issue's trailing three-month daily average of 550,000. The stock hit a new 52-week high of $13.85 before pulling back.
Written by Alexandra Zendrian in New York
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