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As Floor & Decor Holdings, Inc. FND gears up to report its third-quarter 2024 earnings on Oct. 30, after market close, investors are closely monitoring for insights into its performance and strategic direction.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.14 billion, which indicates an increase of 2.8% from the prior-year reported figure.
However, the bottom line of this multi-channel specialty retailer and commercial flooring distributor is anticipated to have declined year over year. The Zacks Consensus Estimate for third-quarter earnings per share has been stable at 43 cents in the past 30 days, which suggests a decline of 29.5% from the year-ago quarter’s actual.
Floor & Decor has a trailing four-quarter earnings surprise of 11.4%, on average. In the last reported quarter, the company outperformed the Zacks Consensus Estimate by a margin of 4%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Floor & Decor Holdings, Inc. Price, Consensus and EPS Surprise
Floor & Decor Holdings, Inc. price-consensus-eps-surprise-chart | Floor & Decor Holdings, Inc. Quote
Key Factors to Observe for FND’s Q3 Earnings
Floor & Decor’s revenues are poised to grow in the third quarter, driven by a combination of targeted strategies aimed at capturing market share and enhancing customer experience. The company’s shift toward offering better and best price points in its product assortment has resulted in a favorable sales mix of higher-margin products. This focus on innovation, trends and styles at competitive everyday prices is likely to have attracted more customers.
Floor & Decor’s proactive efforts to expand its Pro customer base are another key driver. The company’s initiatives to enhance Pro engagement, through dedicated tools like Pro dashboards and CRM systems, have strengthened relationships with contractors and professional buyers. This segment, which represents a significant portion of Floor & Decor’s sales, is likely to see continued growth as the company deepens its connections with trade associations and offers tailored services to Pros.
The company also has been investing in enhancing the omnichannel experience, including improvements in website speed, optimizing search functionality and enhancing the online merchandise processes to make it easier for customers to discover products and complete purchases smoothly. This omnichannel approach positions Floor & Decor to drive revenues.
However, Floor & Decor faces challenges due to weak demand for hard-surface flooring. The company’s second-quarter results reflected this trend, with overall comparable store sales dropping 9% year over year. Existing home sales have declined for almost three consecutive years. High mortgage rates and record home prices have deterred potential homebuyers, limiting the number of homes available for renovation projects. This is particularly concerning for Floor & Decor, as the housing market is a key driver of demand for flooring materials.
It is essential to acknowledge the presence of the aforementioned headwinds, which may pose challenges to Floor & Decor. Additionally, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the selling and store operating expenses. In the second quarter, these expenses deleveraged 270 basis points, reaching 30.1% of sales.
What the Zacks Model Predicts About Floor & Decor
Our proven model doesn’t conclusively predict an earnings beat for Floor & Decor this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Floor & Decor currently has a Zacks Rank #1 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Home Depot, Inc. HD has an Earnings ESP of +2.64% and currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
HD’s top line is anticipated to have advanced year over year when it reports third-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $39.23 billion, which suggests a 4% increase from the figure reported in the year-ago quarter’s reported number. The consensus estimate for Home Depot’s third-quarter earnings is pegged at $3.64 per share, down 4.5% from the year-ago quarter’s reported number. HD has a trailing four-quarter earnings surprise of 1.6%, on average.
United Rentals, Inc. URI currently has an Earnings ESP of +0.51% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $12.49 implies a surge of 6.5% from the year-ago quarter’s reported number.
United Rentals’ top line is expected to have ascended year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.99 billion, which suggests an increase of 6.1% from the prior-year quarter’s reported number. URI has a trailing four-quarter earnings surprise of 4.8%, on average.
Lennar Corporation LEN currently has an Earnings ESP of +0.18% and a Zacks Rank of 3. The company’s top line is anticipated to decline year over year when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for LEN’s quarterly revenues is pegged at $10.16 billion, which implies a fall of 7.4% from the year-ago quarter’s reported figure.
The consensus estimate for earnings suggests a jump at $4.22, down 18.4% from the year-ago quarter’s reported figure. LEN delivered an earnings beat of 10.3%, on average, in the trailing four quarters.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
Lennar Corporation (LEN) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report
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