Anticipation Builds for Lowe’s Third-Quarter Earnings Report
Mooresville, North Carolina-based Lowe’s Companies, Inc. (LOW) operates as a leading home improvement retailer. With a market cap of $152.5 billion, the company provides tools, appliances, building supplies, carpets, bathroom fixtures, and lighting products. Analysts are eagerly awaiting Lowe’s fiscal third-quarter earnings announcement for 2024, set to take place before the market opens on Tuesday, Nov. 19.
Profit Anticipations Diminish Slightly
Before this earnings report, analysts predict LOW will report a profit of $2.80 per share on a diluted basis, reflecting an 8.5% decrease from $3.06 per share in the same quarter last year. Notably, Lowe’s has exceeded Wall Street’s EPS estimates in its previous four quarterly reports.
Full-Year Projections Show Mixed Results
Looking at the entire fiscal year, analysts forecast that LOW will report earnings of $11.91 per share, down 9.8% compared to $13.20 in fiscal 2023. However, there is optimism that EPS could rise by 6.9% year-over-year to $12.73 in fiscal 2026.
Lowe’s Stock Performance Outshines Competitors
Over the past 52 weeks, LOW stock has outperformed the S&P 500, which gained 38.7%, with Lowe’s shares increasing by an impressive 43.8%. The stock has also exceeded the performance of the Consumer Discretionary Select Sector SPDR Fund (XLY), which saw a 33.5% rise in the same timeframe.
Technological Innovations Boost Efficiency
By collaborating with tech leaders like Apple Inc. (AAPL) and NVIDIA Corporation (NVDA), Lowe’s has enhanced its overall performance. The retailer has incorporated augmented reality for better product visualization and introduced robotics in warehouses to improve operational efficiency and enhance the customer retail experience.
Recent Stock Movements and Analyst Opinions
On Oct. 9, LOW shares increased by over 1% following an upgrade from Loop Capital Markets, which changed the stock rating from “Hold” to “Buy” with a target price of $300. Conversely, on Aug. 20, shares fell by more than 1% after reporting Q2 results. Despite this, the adjusted EPS of $4.10 beat Wall Street’s estimate of $3.96, and the company anticipates its full-year adjusted EPS to range between $11.70 and $11.90.
Outlook Remains Positive Among Analysts
Overall, analysts maintain a positive outlook on LOW stock with a “Moderate Buy” rating. Out of 31 analysts following the stock, 18 recommend a “Strong Buy,” while one suggests a “Moderate Buy” and 12 recommend a “Hold.” The average analyst price target for Lowe’s is $270.34, indicating a slight upside potential of 1% from current levels.
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On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
