Lydall

On Aug. 3 Lydall (NYSE: LDL) reported second-quarter earnings per share of 70 cents, which beat analyst estimates of 62 cents. The maker of industrial and automotive sound and temperature filters and barriers also reported revenue of $137 million for the quarter which beat analysts’ expectations by $2 million.

CEO Dale Barnhart said that lower raw material costs helped contribute to increased sales in the second-quarter. Revenue increased more than 5% from the previous quarter’s revenue of $130 million and nearly 2% on a year-over-year basis from $134.6 million in Q2 2015.

Since we recommended Lydall on July 13 the company’s share price has increased nearly from $43 to $49.70 on Aug. 25.

Masonite

Masonite should be buoyed from some encouraging noise out of customers Home Depot and Lowe’s. Both customers specifically noted strength from indoor door sales and from contractors on their quarterly earnings calls.

While Lowe’s missed comparable sales expectations for the quarter, it called out landscape mowers and tools as the culprit—which Masonite does not sell.

SolarEdge

Solar stocks continue to have a tough time in August following SunPower’s significantly lowered guidance that took investors by surprise. On Aug. 10 the company warned it may lose as much as $175 million for the year 2016 versus profits of $50 million that it predicted in May. The company’s management blamed decreasing demand for utility-scale solar projects  for the reduced guidance.

SunPower has never been a large customer of SolarEdge’s and we do not see its commentary regarding weakness in utility scale projects as a risk to SolarEdge’s projections. SunPower’s residential business grew 22% with improved profitability in the quarter, a metric that bodes well for SolarEdge.

From the Sandbox:

La-Z-Boy

A very poor quarter might push La-Z-Boy off our Sandbox watch list. My concern regarding lackluster sales had kept it out of our portfolio. Indeed this quarter revenue missed estimates by 5% and did not grow at all. Despite the 13% drop in the stock price, it’s no better bargain. I’m raising the risk profile from 2 to 5 and will watch it for one more quarter.