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Investing.com - Canaccord Genuity lowered its price target on Lifetime Brands (NASDAQ:LCUT) to $5.00 from $6.00 on Friday, while maintaining a Buy rating following the company’s second-quarter earnings miss. The stock, which has declined nearly 8% over the past week according to InvestingPro data, currently trades at just 0.39 times book value.
Lifetime Brands reported second-quarter results that fell short of expectations, with sales approximately 5% below consensus and profitability metrics missing analyst forecasts by a significant margin. The company attributed the underperformance to tariffs and their impact on consumer demand. Despite current challenges, InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.74, and has consistently paid dividends for 15 consecutive years.
The housewares manufacturer experienced temporary curtailment or delays in shipments due to variations in tariff rates, particularly affecting its e-commerce and club channels. Unlike many tariff-exposed companies this earnings season, Lifetime Brands declined to offer guidance, citing poor visibility into market conditions.
Despite current challenges, the company anticipates a stronger second half of 2025 as pricing resets and shipments resume. Lifetime Brands is working to reduce its China manufacturing exposure, with 80% of production expected to be outside China by the end of 2025.
Canaccord Genuity reduced its price target based on lowered estimates but maintained its Buy rating, noting that despite China exposure concerns and lack of visibility, the stock appears undervalued at current levels. This assessment aligns with InvestingPro’s Fair Value analysis, which suggests significant upside potential from current prices. For deeper insights into LCUT’s valuation and 10+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Lifetime Brands Inc. reported a net loss of $39.7 million for the second quarter of 2025, a substantial increase from the $18.2 million loss recorded in the same period last year. The company attributed this widening loss to a challenging retail environment and disruptions related to tariffs. Lifetime Brands’ earnings per share (EPS) were reported at a loss of $1.83, which was significantly below the forecasted EPS of -$0.12. Revenue for the quarter also fell short of expectations, totaling $131.9 million compared to the anticipated $139.7 million. These developments have raised investor concerns regarding the company’s financial health and market conditions.
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