Lumber Liquidators Holdings Inc (NYSE:LL) shares lost as much as nearly 21% of their value in pre-market trading on Wednesday after the firm reported financial results for the second quarter, which were significantly below what Wall Street was expecting. The firm posted an adjusted loss of $20.3 million, or $0.75 per share, versus a consensus estimate of a profit of $0.06 per share. In the year-ago quarter, the firm delivered a profit of $16.6 million, or $0.60 per share. The revenues of $247.9 million, similarly undeperformed the expectations of $256.9 million and was down by 5.8% year-over-year. Lumber Liquidators Holdings Inc (NYSE:LL) is still suffering from a damaging “60 Minutes” report aired in March, the firm said, which alleged that its wood laminates sourced from China contained deadly levels of formaldehyde. Same-store sales for stores open at least a year fell 10% in the second quarter. The firm did not release an outlook for the year. Year-to-date, the stock has fallen nearly 72% in value.
Though the Lumber Liquidators Holdings Inc (NYSE:LL)’s stock lost 53.58% during the first quarter, the aggregate value of hedge funds’ holdings in the company decreased by 68.23% over the quarter, which suggests an outflow of capital during the first three months of 2015. However, a total of 28 hedge funds still reported long positions in the company as of the end of March.
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What does the smart money think about Lumber Liquidators Holdings Inc (NYSE:LL)?
Based on our data, Point72 Asset Management, led by Steve Cohen, held the biggest stake in Lumber Liquidators Holdings Inc (NYSE:LL) by the end of the first quarter, owning 2.11 million shares, while Phill Gross and Robert Atchinson’s Adage Capital Management initiated a stake of 715,900 shares during the first three months of the year. On the other hand, Sharlyn C. Heslam’s Stockbridge Partners dropped the largest stake among hedge funds tracked by Insider Monkey, selling almost 2 million shares and Mariko Gordon’s fund, Daruma Asset Management sold 1.22 million shares.
With no end yet in sight for its troubles, as well as getting a bearish outlook from hedge funds, Insider Monkey does not recommend a long position in Lumber Liquidators Holdings Inc (NYSE:LL).