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.