LCI (LCII) Surpasses Q2 Earnings and Revenue Estimates

Core Insights - LCI reported quarterly earnings of $2.40 per share, exceeding the Zacks Consensus Estimate of $2.29 per share, and showing a significant increase from $1.31 per share a year ago, resulting in an earnings surprise of 4.80% [1] - The company achieved revenues of $1.05 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.16% and reflecting a year-over-year increase from $1.01 billion [2] - LCI has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of LCI's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.60 on revenues of $1.02 billion, while the estimate for the current fiscal year is $6.29 on revenues of $3.96 billion [7] Market Performance - LCI shares have declined approximately 17% since the beginning of the year, contrasting with the S&P 500's gain of 8.7% [3] - The estimate revisions trend for LCI is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which LCI belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]