Consumer Discretionary

Lowe’s (LOW) sees macroeconomic uncertainty weighing on its outlook for the year as the do-it-yourself business continues slowing, even though the retailer’s fiscal fourth-quarter results topped market estimates. The company anticipates per-share earnings in a range of $12 to $12.30 and sales between $84 billion to $85 billion for fiscal 2024. The current consensus on Capital IQ is for GAAP EPS of $12.28 and revenue of $85.5 billion. In the just ended fiscal year, earnings increased to $13.20 a share from $10.17, while sales dropped to $86.38 billion from $97.06 billion. Comparable sales are expected to be down 2% to 3% on an annual basis in the ongoing year, according to the retailer. The Street’s current forecast is for a 1.3% decrease. In the last quarter, the sales slipped 6.2% as do-it-yourself demand slowed and January winter weather weighed. Pro customer comparable sales were flat, the retailer said. “This quarter […]

Lowe’s Companies (NYSE:LOW) ‘s Exec Says Saw Record Black Friday And Cyber Monday Online Sales And Improved Holiday Sell-Through And Margins.

Lowe’s Companies (NYSE:LOW) ‘s Exec Says As We Move Into H2, Expect Comp Sales To Improve.

DA Davidson analyst Michael Baker reiterates Lowe’s Companies (NYSE:LOW) with a Buy and maintains $258 price target.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target $10 to $221, 18x our FY 25 EPS view of $12.26 (down $0.93; we set FY 26 at $13.76), a premium to the five-year P/E of 17.1x, reflecting LOW’s operational execution. FQ4 EPS of $1.77 (-22.3% Y/Y) beat by $0.09 on revenue of $18.6B (-17% Y/Y), ~1% above consensus. Comparable sales (-6.2% Y/Y) improved from FQ3’s -7.4% with strong holiday sales offsetting, in part, Do-It-Yourself pull-back and weather headwinds. Online and Pro-segment comparable sales were flat. LOW’s Pro survey shows cautious optimism. EBIT margin contracted 50 bps as product mix was partly offset by productivity focus. Macroeconomic concerns tame LOW’s short-term view, but mid- to long-term catalysts (home shortage, household formation, and work from home) sustain LOW’s bullish view. FY 24’s 2.2%

The following is a summary of the Lowe’s Companies, Inc. (LOW) Q4 2023 Earnings Call Transcript: Financial Performance: Lowe’s reported Q4 sales of $18.6 billion with diluted earnings per share of $1.77. Gross margin was 32.4% of sales in Q4, up by 7 basis points from the previous year. The company’s effective tax rate was 23.8%, in line with the prior year’s adjusted rate. The operating margin rate for Q4 was 9.1%, showing a decline of 48 basis points from last year. Lowe’s paid $632 million in dividends in 2023 and repurchased 1.9 million shares, returning over $1 billion to shareholders. The company’s capital expenditure was $620 million in Q4, to invest in strategic initiatives for growth and profitability. Sales expectations for 2024 range from $84 billion to $85 billion with comparable sales decline expected in the range of 2% to 3%. The company forecasts an operating margin of between