Will Lowe’s (LOW) Earnings Bring Analyst Expectations Back to Reality?
When Wall Street analysts get “growth” on the brain, they simply can’t control themselves. Hopefully today’s earnings announcement from top home improvement retailer Lowe’s (NYSE: LOW) will realign analyst expectations with reality.
In my humble opinion, topline revenue growth at Lowe’s was a positive sign given homebuilding has fallen off a cliff. Revenue grew 4% to $14.36 billion while same-store sales were up 1.6%. However, the Koolaid crowd was expecting Lowe’s to rake in revenues of $14.52 billion.
Well, let’s put down the sugary drinks and 5-hour Energy: Lowe’s expects its revenue grow 4% for the year, or $49.11 billion. If housing or unemployment gets worse, expect that number to adjust accordingly.
Disclosure: No positions.