10:02 AM EDT, 10/25/2024 (MT Newswires) -- Floor & Decor ( FND ) is likely to report another weak quarter and soft outlook when it releases its Q3 financial results, which are expected to have "more downside than upside risk," analysts at Wedbush said in a note to clients Friday.

The analysts lowered their Q3 EPS estimate to $0.40 from $0.42, below the consensus of $0.44, and comps estimate to -7.5% from -6.0% and against consensus of -6.5%.

"Elevated interest rates continue to pressure the broader housing market, leading to reduced volume of whole-home flooring projects tied to home sales and an overall deferral of large projects," Wedbush analysts said in the note.

Wedbush said that while it expects "sequential improvement" in Q4, it sees downside risk with elevated interest/mortgage rates "pressuring housing affordability, existing home sales growth and volumes."

Wedbush said, however, that it continues to see long-term potential for Floor & Decor ( FND ) despite the soft near-term outlook.

Wedbush maintained its outperform rating and $110 price target on Floor & Decor's ( FND ) stock.

Price: 103.87, Change: -0.17, Percent Change: -0.16