Stock Story -
Home improvement retailer Lowe’s (NYSE:LOW) will be reporting results tomorrow before market open. Here’s what to look for.
Lowe's beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $21.36 billion, down 4.4% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ earnings estimates but a miss of analysts’ gross margin estimates.
Is Lowe's a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Lowe’s revenue to decline 4% year on year to $23.96 billion, improving from the 9.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.00 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lowe's has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Lowe’s peers in the home furnishing and improvement retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Home Depot (NYSE:HD) posted flat year-on-year revenue, beating analysts’ expectations by 1.1%, and Floor And Decor reported flat revenue, falling short of estimates by 1.7%. Home Depot traded up 2.8% following the results while Floor And Decor was also up 4.1%.
Read the full analysis of Home Depot’s and Floor And Decor’s results on StockStory.
Investors in the home furnishing and improvement retail segment have had steady hands going into earnings, with share prices flat over the last month. Lowe’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $250.8 (compared to the current share price of $241.19).