Lumber Liquidators (LL) on Watch Ahead of Sales Update

Today was a busy day for battle-ground stock Lumber Liquidators (NYSE: LL) as traders discussed ramifications as the EPA prepares to finalize rules that will set limits on formaldehyde emissions from composite wood products. However, tomorrow promises to be an even more hectic as the company plans to issue a sales update in the wake of the damning '60 Minutes' piece which accused the company of selling illegal laminate flooring.

The company will issue the sales update in a press release before the opening bell tomorrow StreetInsider.com confirmed with the company.

In the company's last update on its March 12 conference call, Lumber Liquidators said it sees Q1 sales of $253.6-$265.6 million, which was below the then consensus of $275.98 million. The consensus has since moved down to $256.8 million.

In a note last week to clients, Janney Capital analyst David Strasser said store visits have shown a strong sequential improvement as time passes from the 60 Minutes report. He said "we anticipate based on our store calls and visits that business has not necessarily returned to normal, but is far, far better than guidance issued on March 12th, when the company last spoke."

Shares of Lumber Liquidators have recovered somewhat from the initial scare but remain down 53% since the negative news piece.

Today the stock is up 5%.

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