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.
LOOKING BACK
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.
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.