- Lowe’s has increased its full-year total sales forecast to a range of $83.0 billion to $83.5 billion, up from the previous forecast of $82.7 billion to $83.2 billion.
- The company’s predicted adjusted operating margin is narrowed to between 12.3% and 12.4%, slightly down from the earlier forecast of 12.4% to 12.5%.
- Lowe’s expects comparable sales to decline by 3% to 3.5%, improving slightly from an earlier projection of a 3.5% to 4% decline.
- For the third quarter, Lowe’s reported an EPS of $2.99, compared to $3.06 in the previous year.
- Net sales for the quarter were $20.17 billion, a decrease of 1.5% year-over-year, but higher than the estimated $19.93 billion.
- Comparable sales fell by 1.1%, beating the expected decline of 2.7%.
- Gross profit was reported at $6.80 billion, slightly lower by 1.4% compared to the previous year but exceeding the estimate of $6.74 billion.
- Gross margin remained steady at 33.7%, aligning with the previous year and slightly below the estimated 33.8%.
- SG&A costs as a percentage of revenue increased to 19% from 18.4% year-over-year, aligning closely with the estimate of 19.2%.
- The operating margin for the quarter was 12.6%, down from 13.2% in the previous year, matching the estimate.
- Lowe’s total store count stood at 1,747 locations, a slight increase from 1,746 last year, meeting expectations.
- Retail space expanded marginally to 195.0 million square feet from 194.90 million the previous year, slightly below the estimated 195.99 million.
- According to Chairman, President, and CEO Marvin R. Ellison, the company outperformed expectations due to strong Pro sales, online transactions, and outdoor DIY projects, even before accounting for storm-related activity.
- Analyst ratings include 21 buys, 14 holds, and 3 sells.
Lowe’s Companies Inc on Smartkarma
Several independent analysts on Smartkarma have published bullish research reports on Lowe’s Companies Inc, providing insights into the company’s performance and future outlook. Baptista Research, for example, released a report titled “Lowe’s Companies: A Dive Into Its Brand Strength & Market Position! – Major Drivers,” analyzing the company’s second-quarter 2024 earnings. Despite challenging market conditions, Lowe’s reported $23.6 billion in sales for Q2, with a 5.1% decline in comparable sales. The report highlighted a decrease in demand for DIY projects but noted solid performance in the Professional segment and growth in online sales.
Another research report from Baptista Research, titled “Lowe’s Companies: Front-End Transformation and Investment in Technology! – Major Drivers,” focused on Lowe’s recent earnings and outlook for fiscal 2024. The company recorded $21.4 billion in first-quarter sales, with a 4.1% dip in comparable sales compared to the previous year. Despite ongoing challenges in DIY discretionary spending, Lowe’s delivered better-than-expected spring seasonal sales. The analysts’ bullish sentiments reflect optimism about Lowe’s strategic initiatives and resilience amid market headwinds.
A look at Lowe’s Companies Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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
With an overall positive outlook, Lowe’s Companies Inc, a home improvement retailer in the United States, is positioned for long-term growth. Smartkarma Smart Scores reveal strong ratings in Growth, Resilience, and Momentum, indicating the company’s robust potential for expanding operations, weathering economic challenges, and maintaining a strong market position. While the Value score may be low, the higher scores in Dividend, Growth, Resilience, and Momentum point towards promising prospects for investors seeking steady returns and capital appreciation in the home improvement sector.
Lowe’s Companies Inc stands out as a resilient player in the home improvement segment, offering a wide range of products and services for home decoration, maintenance, repair, remodeling, and property upkeep. With top scores in Growth and Momentum, the company showcases a solid foundation for sustained expansion and market performance. Investors looking for a stable dividend income alongside growth potential may find Lowe’s Companies Inc an attractive long-term investment choice in the competitive retail landscape.
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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