Lovesac (LOVE) Reports Q3 Loss, Lags Revenue Estimates
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AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Lovesac (LOVE) Reports Q3 Loss, Lags Revenue Estimates December 07, 2022 — 08:15 am EST Written by Zacks Equity Research for Zacks-> Lovesac (LOVE) came out with a quarterly loss of $0.55 per share versus the Zacks Consensus Estimate of a loss of $0.73. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.66%. A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.45, delivering a surprise of 21.62%. Over the last four quarters, the company has surpassed consensus EPS estimates four times.Lovesac, which belongs to the Zacks Retail - Home Furnishings industry, posted revenues of $134.78 million for the quarter ended October 2022, missing the Zacks Consensus Estimate by 0.01%. This compares to year-ago revenues of $116.68 million. The company has topped consensus revenue estimates three times over the last four quarters.The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.Lovesac shares have lost about 66.1% since the beginning of the year versus the S&P 500's decline of -17.3%.What's Next for Lovesac?While Lovesac has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.Ahead of this earnings release, the estimate revisions trend for Lovesac: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.46 on $240.74 million in revenues for the coming quarter and $2.33 on $653.44 million in revenues for the current fiscal year.Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Home Furnishings is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Retail-Wholesale sector, GMS (GMS), has yet to report results for the quarter ended October 2022. The results are expected to be released on December 8.This company is expected to post quarterly earnings of $2.33 per share in its upcoming report, which represents a year-over-year change of +16.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.GMS's revenues are expected to be $1.36 billion, up 18.3% from the year-ago quarter. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThe Lovesac Company (LOVE) : Free Stock Analysis ReportGMS Inc. (GMS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Tags StocksInvesting Zacks Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. 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