Lumber Liquidators and Stratasys released their third quarter earnings reports before opening bell this morning. Lumber Liquidators posted a loss that was worse than expected at 31 cents per share or $8.5 million. In last year’s third quarter, the embattled flooring retailer reported income of 58 cents per share or $15.7 million. Sales slumped by 11% to $236.1 million compared to last year’s $266.1 million. Analysts had been expecting losses of 18 cents per share and $257.8 million in revenue.
Stratasys reported non-GAAP earnings of 1 cent per share and $167.6 million in revenue. Analysts had been expecting earnings of 8 cents per share and revenue of $184.6 million. In last year’s third quarter, the 3-D printing company posted non-GAAP earnings of 58 cents per share and $203.6 million in revenue.
Lumber Liquidators stumbles under allegations
Lumber Liquidators said the allegations about the quality of its China-sourced laminate flooring resulted in weakened demand across all of its product categories, although laminate and bamboo flooring products took the biggest hit. The retailer also suspended sales of all China-sourced laminate flooring and dealt with a supply disruption as it replaced some vendors of engineered hardwood.
The retailer declined to provide any guidance for the fourth quarter. For the full year, it expects to open between 23 and 24 new stores in the expanded showroom format, remodel 12 existing stores to the new format, and spend between $22 million and $25 million on capital expenditures.
Lumber Liquidators also announced this morning that it has appointed John Presley as CEO.
Shares of Lumber Liquidators fell by as much as 8% in premarket trading this morning.
Stratasys plunges after sales disappoint
Stratasys posted a GAAP loss of $938 million or $18.06 per share compared to last year’s loss of 62 cents or $31.3 million. Adjusted EBITDA was a loss of $1.5 million. Stratasys sold 5,467 3D printing and additive manufacturing systems during the quarter. Management cited a difficult macroeconomic climate for the weak results
“We believe the current environment is primarily a result of weak investment in capital equipment, which has combined with the negative impact of excess capacity that we believe was created during a period of extraordinary growth for Stratasys, and the overall industry, during 2013 and 2014,” Stratasys CEO David Reis said in a statement. “Additionally, although we believe that overall penetration in the prototyping market remains low, the segment has matured to an extent that our customers now have a wide selection of technology offerings to evaluate, resulting in lengthened sales cycles.”
For the fourth quarter, Stratasys expects revenue of between $160 million and $175 million and non-GAAP net losses of between 17 cents and 6 cents per share. The company expects a GAAP net loss of 68 cents to 54 cents per share.
As of this writing, shares of Stratasys were down 6.32% at $25.50 per share.