Lumber Liquidator's stock falls ahead of Q4 earnings, as previous reports have disappointed
Shares of Lumber Liquidators Holdings Inc. fell 1.3% in afternoon trade Friday, ahead of the hardwood flooring seller's fourth-quarter results. It may not be a big surprise to see the stock sell off ahead of results--it has tumbled 14.3% this month (the S&P 500 has gained 1.6%). The stock has plunged on the day of the past five earnings reports, by an average of 13.1%. Even though some analysts said $33 million fine levied this week on the company, for making fraudulent statements to investors regarding unsafe flooring sourced from China, removes the last major legal overhand, Wall Street remains unanimously cautious, with all 8 analysts surveyed by FactSet rating the company the equivalent of "hold." Wedbush's Budd Bugatch said in a recent note that he's encouraged by the legal progress, there's still uncertainty regarding the underlying store operating model, the lack of resolution of the China tariffs and increasing competition from Home Depot Inc. , Lowe's Companies and Floor & Decor Holdings Inc. .
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