- Lowe’s 1Q net sales topped estimates, reaching $21.36 billion, a decrease of 4.4% from the previous year.
- The earnings per share (EPS) was reported at $3.06, down from $3.77 of the previous year.
- Lowe’s gross profit for the 1Q was $7.09 billion, a 5.8% decline compared to the previous year, but still slightly exceeding the estimated $7.07 billion.
- The gross margin percentage was slightly below last year’s mark at 33.2% versus 33.7% in the previous year. This was also slightly below the estimate of 33.5%.
- Selling, General and Administrative (SG&A) expense ratio came in at 18.8% of revenue, higher than last year’s 17.1%, but lower than the estimated 19.1%.
- Operating margin was reported at 12.4%, which is lower than last year’s 14.7%, but slightly above the estimate of 12.3%.
- The company reaffirms its financial outlook for the full year of 2024.
- CEO Marvin R. Ellison expresses satisfaction with the company’s strong execution and enhanced customer service in the beginning of the spring season.
- As of now, Lowe’s stock rating stands at 16 buys, 17 holds, and 4 sells.
Lowe’s Companies Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely monitoring Lowe’s Companies Inc. Recent insights delve into the company’s challenges, such as a 6.2% decline in comparable sales in the fourth quarter of 2023. Factors like cautious consumer spending on home improvement projects and unfavorable weather have impacted Lowe’s performance. Baptista Research aims to assess these influences on the company’s future stock price, conducting an independent valuation using a Discounted Cash Flow (DCF) methodology.
Furthermore, another report by Baptista Research highlights Lowe’s mixed results, including revenues below analyst consensus and a 7.4% decline in comparable sales in the previous quarter. This drop was mainly due to reduced discretionary spending by DIY customers, especially in higher-priced categories. The analyst’s fundamental analysis of Lowe’s historical financial statements offers a deeper understanding of the company’s recent partnerships, like the one with Carhatt, and other major developments influencing its performance.
A look at Lowe’s Companies Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Lowe’s Companies Inc has a promising long-term outlook. The company scores well in Growth, Resilience, and Momentum, indicating strong potential for expansion, steady performance during economic challenges, and positive market trends. The company’s focus on dividends also adds stability to its overall profile. With a comprehensive range of home improvement products and services, Lowe’s is strategically positioned to benefit from the ongoing demand for home maintenance, remodeling, and decoration.
Lowe’s Companies, Inc., a leading home improvement retailer in the United States, is expected to continue its growth trajectory fueled by its strong performance in key areas such as Growth, Resilience, and Momentum according to Smartkarma Smart Scores. Despite a lower score in Value, the company’s focus on dividends and solid track record in the industry provide a foundation for long-term success. With a wide range of products and services catering to various home improvement needs, Lowe’s is well-positioned to capitalize on the growing market demand for property maintenance and remodeling.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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