Lowe’s Prepares to Announce Q4 Earnings: Analysts Weigh In
Lowe’s Companies, Inc. (LOW), a prominent home improvement retailer located in Mooresville, North Carolina, provides a broad range of products and services across the U.S. and Canada. With a market capitalization of $147.4 billion, Lowe’s caters to both DIY customers and professionals by offering tools, appliances, building materials, and installation services. The company is set to reveal its fiscal fourth-quarter earnings for 2024 on Wednesday, February 26, before the market opens.
Analysts anticipate that Lowe’s will report earnings of $1.81 per share on a diluted basis, reflecting a 2.3% increase from $1.77 per share in the same quarter last year. This track record includes surpassing Wall Street’s earnings-per-share (EPS) estimates in the last four quarterly reports.
Looking ahead to fiscal year 2025, expectations indicate a decrease in EPS to $11.88—a drop of 10% from $13.20 in fiscal 2024. Nonetheless, projections for fiscal 2026 suggest a recovery, with EPS expected to rise by 5.7% to $12.56.
In the past year, shares of LOW have appreciated by 20.2%. While this is a solid performance, it lags behind the S&P 500’s 25% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) impressive 32% gains during the same period.
On January 15, Lowe’s saw a more than 2% increase in its share price as homebuilders and suppliers enjoyed a rally after a significant decline in Treasury note yields, signaling a potential rise in housing demand. Conversely, on November 19, shares declined by 4.6% following the announcement of its Q3 earnings report. In that quarter, Lowe’s reported an adjusted profit of $2.89 per share—exceeding the $2.82 estimate from analysts—with revenue hitting $20.17 billion, surpassing the predicted $19.96 billion. Despite raising its full-year sales and earnings forecast, concerns lingered over ongoing declines in topline growth and profitability.
The consensus among analysts regarding LOW stock is fairly optimistic, resulting in a “Moderate Buy” rating overall. Of the 32 analysts monitoring the stock, 20 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and 11 advise a “Hold.”
With an average analyst price target of $282.73, there appears to be a potential upside of 7% from current pricing levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article serves informational purposes. For more details, please view the Barchart Disclosure Policy here.
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