Lumber Liquidators (LL) Stock Climbs on New CEO Despite Earnings Miss

Lumber Liquidators (LL) stock is rising in pre-market trading on Wednesday, as the appointment of a new CEO outweighs a 2015 third quarter earnings loss.
By Rachel Graf ,

NEW YORK (TheStreet) -- Lumber Liquidators (LL) - Get Report stock is up by 3.72% to $14.76 in pre-market trading on Wednesday, as a new CEO appointment overshadows a 2015 third quarter earnings and revenue miss. 

The hardwood flooring retailer appointed John Presley CEO this morning, effective November 16. Before joining Lumber Liquidators, Presley served as CEO of First Capital Bancorp (FCVA) since October of 2008. 

Presley will succeed Thomas Sullivan, who has been acting CEO since May and will serve on the board and as a special adviser to the CEO after Presley assumes the position. 

Before the market open, the company posted a loss of 31 cents per share, up from earnings of 58 cents per share for the year ago period. 

Revenue fell by 11.3% year over year, to $236.1 million from $266.1 million for the 2014 third quarter.

Lumber Liquidators had been forecast to report a loss of 18 cents per share on revenue of $259.77 million by analysts surveyed by Thomson Reuters.

"With our new head of compliance on board, we are developing stronger relationships with suppliers around the globe and have continued our engagement with regulators and other stakeholders," acting CEO Thomas Sullivan said in a statement. "Although there are still challenges ahead of us, we believe that if we stay focused and execute on our initiatives, we will continue to bring value to our customers, employees and shareholders."

Separately, TheStreet Ratings team rates LUMBER LIQUIDATORS HLDGS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate LUMBER LIQUIDATORS HLDGS INC (LL) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins.

You can view the full analysis from the report here: LL

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