Lumber Liquidators and Allergan released their latest earnings reports before opening bell this morning. Lumber Liquidators posted losses of $1.20 per share, which was far worse than the 24 cents per share in losses that were expected. Revenues were $233.5 million, against the consensus of $237.44 million.
Allergan plc Ordinary Shares (NYSE:AGN) posted adjusted earnings of $3.04 per share, beating the consensus of $3 per share. Revenue came in at $3.8 billion, against the consensus of $3.95 billion.
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Lumber Liquidators tumbles on weak comparable sales
Lumber Liquidators said comparable store net sales tumbled 13.9% on the back of a 13.8% decline in the number of invoiced customers and a decline of 0.1% in the average sale. The embattled flooring retailer added that comparable store sales trends improved during the quarter as comparisons improved toward the end of the first quarter. Management attributes the weak net sales to changes in the company’s promotional strategy and continuing negative sentiment among consumers due to negative media coverage in connection with some Chinese laminate flooring products. Lumber Liquidators stopped selling those products in May 2015.
Shares of Lumber Liquidators tumbled 11.22% to $11.95 in premarket trades this morning.
Allergan’s losses improve
Allergan posted a GAAP loss of 38 cents per share from continuing operations, compared to last year’s GAAP loss of $2.80 per share. Adjusted EBITDA climbed 65% to $1.8 billion, compared to last year’s $1.1 billion.
The U.S. Brands segment’s revenue climbed 27% to $2.3 billion due to the acquisition of legacy Allergan brands like Botox and Restasis. International Brands net revenues climbed to $673 million, again due to the acquisition of legacy Allergan brands. Anda Distribution net revenues declined to $365 million as a result of CVS Health’s acquisition of Target’s in-store pharmacies. The Global Generics business was included under discontinued operations as the company prepares to divest it to Teva.
Allergan management expects full-year adjusted net revenues to be about $17 billion with adjusted Branded net revenues at about $15 billion. The Botox maker also announced that its board of directors had authorized $10 billion in share repurchases. It intends to repurchase $4 billion to $5 billion worth of shares in the next four to six months.
Shares of Allergan edged lower in premarket trading, declining to as low as $213.