Categories AlphaGraphs, Analysis, Retail

Earnings Preview: Restructuring might cost Lowe’s in Q4, but aid in long term

Patio furniture maker Lowe’s Companies (LOW) is scheduled to post its fourth-quarter 2018 earnings on Feb. 27, before the opening bell.

All eyes would be on the bottom line with the Street expecting earnings of about 80 cents a share.

While earnings beat estimate in the previously reported third quarter, it stands to fact that it missed the four quarters before the beat.

For the upcoming fourth-quarter announcement, analysts predict about $15.7 billion in revenues.

In the quarter that passed, Lowe’s seems to have contained costs and improved cash flow from operations. For the full year 2018, Lowe’s expects total sales to grow 4% y-o-y with comparable sales growth of 2.5%, generating adjusted earnings between $5.08 and $5.13 a share.

While focusing on modernizing its way of sales, Lowe’s has also been busy streamlining the business. With plans to exit Mexico retails ops and shutter its Orchard Supply Hardware business, Lowe’s seems to be moving its resources to focus on the core business, and that is a good sign.


In the previously reported third-quarter, Lowe’s Companies beat market estimates for revenue and earnings, but poor comp sales pulled the stock down following the results announcement.

Lowe's Earnings

In the third quarter, the furniture giant then saw total sales grow 3.8% while comp sales inch up 1.5%. US home improvement comp sales rose 2% in the three-month period. Adjusted EPS fell 1%.

In the quarter, Lowe’s benefited from a favorable macroeconomic environment that drove traffic to its stores and website, but these were offset by challenges in inventory and assortments.



Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight