- Lowe’s FY adjusted EPS forecast of $12.25 misses the estimate of $12.40.
- Total sales are expected to reach $86.0 billion, surpassing the estimate of $85.36 billion.
- Adjusted operating margin is projected at 12.1%.
- Comparable sales are anticipated to remain flat, falling short of the +0.32% estimate.
- Capital expenditure is estimated to be up to $2.5 billion, aligning closely with forecasts.
Third Quarter Results
- Adjusted EPS stood at $3.06, beating the estimate of $3.00.
- Reported EPS was $2.88, down from $2.99 year-on-year.
- Net sales were $20.81 billion, a 3.2% year-on-year increase, meeting expectations.
- Comparable sales grew by 0.4%, below the estimated 1.02%.
- Gross profit increased by 4.7% year-on-year to $7.12 billion, exceeding the $7.02 billion estimate.
- Gross margin improved to 34.2%, above both last year’s 33.7% and the 33.6% estimate.
- SG&A as a percentage of revenue rose to 20% from 19% year-on-year.
- Operating margin declined to 11.9% from 12.6% year-on-year.
- Lowe’s total location count increased slightly to 1,756, with retail space growing to 195.8 million square feet.
Comments
- The company projects flat comparable sales for the fiscal year compared to the previous year.
- Lowe’s emphasizes economic uncertainties impacting its 2025 outlook.
- Despite external challenges, the company delivered positive comparable sales in the recent quarter and started November positively.
- Analyst recommendations include 22 buys, 12 holds, and 3 sells.
Lowe’s Companies Inc on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely following Lowe’s Companies Inc, a key player in the home improvement retail sector. One report dives into Lowe’s recent moves, including the announcement of Q2 2025 earnings and the strategic acquisition of Foundation Building Materials. This acquisition is seen as crucial for Lowe’s Total Home strategy, expanding its Pro service offerings and diversifying revenue streams to better serve larger Pro customers, a market estimated at $250 billion.
Another report by Baptista Research focuses on Lowe’s localization strategy and space productivity improvements to drive sales growth and market share in targeted segments. Despite mixed performance in the first quarter of fiscal 2025, with total sales of $20.9 billion and a 1.7% decline in comparable sales, Lowe’s demonstrated strength in Pro sales and online sales growth. The analysts highlighted the challenges in the DIY segment due to factors like discretionary spending and adverse weather, but also noted positive trends in online sales due to enhanced traffic and conversion rates.
A look at Lowe’s Companies Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Lowe’s Companies Inc, the company has a solid outlook for the long term. With above-average scores in Dividend, Growth, Resilience, and Momentum, Lowe’s is positioned well in various aspects. The company’s focus on maintaining its dividend payouts, consistent growth opportunities, ability to weather economic challenges, and strong momentum in the market are positive indicators of its future prospects.
Lowe’s Companies, Inc. stands as a prominent player in the home improvement retail sector within the United States. Specializing in the distribution of building materials and supplies, Lowe’s offers a comprehensive range of products and services catering to home decorating, maintenance, repair, remodeling, and property upkeep. With a diversified portfolio and a strategic market position, Lowe’s is poised for sustained growth and stability in the foreseeable future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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