By Senad Karaahmetovic
Lowe’s (NYSE:LOW) reported Q4 EPS upside but revenue figures trailed market estimates. The retailer reported a profit per share of $2.28 on revenue of $22.4 billion, which compares to the average analyst estimate of $2.21 per share on revenue of $22.73B.
Comparable sales dropped 1.5% year-over-year with U.S. sales down 0.7%. Analysts were looking for growth of 0.9% and 0.8%, respectively.
"I am confident we are making the right investments – in our associates and in our business – to drive long-term growth. We also continue to improve operating margin, demonstrating our ongoing focus on driving productivity across the company," said CEO Marvin Ellison.
The company’s full-year revenue forecast is in the range of $88B to $90B, missing the consensus of $90.48B. On the profit side, the company guided to $13.60-14.00 in FY EPS, in-line with the average analyst estimate of $13.79. Comparable sales are expected in the range of 0% to -2% relative to the prior year.
Vital Knowledge analysts commented:
“This report seems a tiny bit better than feared, but only because HD helped lower the bar when it reported on 2/21.”
Lowe’s shares are trading flat in pre-market Wednesday.