Lowe’s Companies, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Lowe’s Companies, Inc. (NYSE:LOW) will unveil its latest earnings on Monday, August 15, 2011. Lowe’s Companies Inc. is a home improvement retailer offering products to homeowners, renters and commercial business customers.

Lowe’s Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 67 cents per share, a rise of 15.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 68 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 67 cents during the last month. For the year, analysts are projecting net income of $1.64 per share, a rise of 13.1% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 34 cents per share versus a mean estimate of net income of 36 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $14.78 billion in revenue this quarter, a rise of 2.9% from the year ago quarter. Analysts are forecasting total revenue of $50.46 billion for the year, a rise of 3.4% from last year’s revenue of $48.82 billion.

Analyst Ratings: 13 out of 24 analysts surveyed (54.2%) have a buy rating on Lowe’s Companies.. This is below the mean analyst rating of six competitors, which average 54.2% buy ratings.

Key Stats:

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 1.6% in the first quarter and rose 3.1%in the fourth quarter of the last fiscal year, 1.9% in the third quarter of the last fiscal year and 3.7% in the second quarter of the last fiscal year.

The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 5.7% in the first quarter from the year earlier, while the figure rose 39% in the fourth quarter of the last fiscal year, 17.4% in the third quarter of the last fiscal year and 9.6% in the second quarter of the last fiscal year.

Competitors to Watch: The Home Depot, Inc. (NYSE:HD), Builders FirstSource, Inc. (NASDAQ:BLDR), Lumber Liquidators Hldgs., Inc. (NYSE:LL), Tractor Supply Company (NASDAQ:TSCO), Hornbach-Baumarkt-AG (NYSE:HBM), PulteGroup (NYSE:PHM), Toll Brothers (NYSE:TOL), D.R. Horton (NYSE:DHI), KB Home (NYSE:KBH), Lennar Corp (NYSE:LEN), Beazer Homes (NYSE:BZH), Sherwin-Williams (NYSE:SHW), Sears Holdings (NASDAQ:SHLD), Target (NYSE:TGT) and Wal-Mart (NYSE:WMT).

Stock Price Performance: During May 13, 2011 to August 9, 2011, the stock price had fallen $6.43 (-25.1%) from $25.60 to $19.17. The stock price saw one of its best stretches over the last year between March 16, 2011 and March 24, 2011 when shares rose for seven-straight days, rising 4.9% (+$1.26) over that span. It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10-straight days, falling 18.3% (-$4.17) over that span. Shares are down $5.54 (-22.4%) year to date.

(Source: Xignite Financials)

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