Lowe’s Companies Earnings: Here’s Why the Stock is Down Now

Lowe’s Companies Inc. (NYSE:LOW) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.83%.

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Lowe’s Companies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.36% to $0.49 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Decreased 0.49% to $13.09 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lowe’s Companies Inc. reported adjusted EPS income of $0.49 per share. By that measure, the company missed the mean analyst estimate of $0.51. It missed the average revenue estimate of $13.46 billion.

Quoting Management: “Results for indoor categories were solid for the quarter, a testament to the team’s continued focus on improving our core business through cross-functional collaboration and consistent execution in stores and across other selling channels,” commented Robert A. Niblock, Lowe’s chairman, president and CEO.
“Cooler than normal temperatures and greater precipitation resulted in a delayed spring selling season which impacted our results in exterior categories,” Niblock added. “While overall performance in the month of March was particularly soft, April improved significantly and we have maintained that positive momentum through the first few weeks of May.”

Key Stats (on next page)…

Revenue increased 18.49% from $11.05 billion in the previous quarter. EPS increased 88.46% from $0.26 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.78 and has not changed. For the current year, the average estimate has moved down from a profit of $2.09 to a profit of $2.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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