Lowe’s Companies (NYSE: LOW) is scheduled to report its earnings results for the second quarter on Wednesday before the market opens. The results will be hurt by the convergence of cost pressure, a significant transition in merchandising organization, and ineffective legacy pricing tools and processes.
The company’s products revenue will be benefited by the in-store and online merchandise purchases, while services revenue will be driven by the professional installation services made through subcontractors. The majority of revenue for goods and services will be recognized in the quarter following revenue deferral.
The company’s future success depends on its ability to adapt the business concept to respond to customers’ changing shopping habits and demands as the home improvement retail environment is rapidly evolving. The results will be impacted by the failure to identify changing trends, business concept adaptation, implement change, growth and productivity initiatives.
The company has relied on the public debt markets to fund portions of its capital investments and the commercial paper market and bank credit facilities to fund its working capital needs. The company’s credit strength depends on liquidity and access to capital that relies on efficient, rational and open capital markets.
Analysts expect the company’s earnings to fall by 3.40% to $2.00 per share while revenue will rise by 0.30% to $20.96 billion for the second quarter. In comparison, during the previous year quarter, Lowe’s posted a profit of $2.07 per share on revenue of $20.89 billion. The company has surprised investors by beating analysts’ expectations thrice in the past four quarters.
Read: Analog Devices Q3 earnings preview
For the first quarter, Lowe’s reported a 2% increase in earnings helped by a tax benefit arising from its sale of the assets of Mexico retail operations. Total sales rose by 2.2% and comparable sales grew by 3.5%. Comparable sales for the US home improvement business increased by 4.2%.
For fiscal 2019, the company expects total sales growth of about 2% and comparable sales to increase by about 3%. The earnings are predicted to be in the range of $5.54 to $5.74 per share and adjusted earnings are anticipated to be in the range of $5.45 to $5.65 per share.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
Important takeaways from Conagra Brands’ Q4 2025 report
Conagra Brands, Inc. (NYSE: CAG), a leading provider of consumer packaged goods, reported weaker-than-expected sales and adjusted earnings for its fourth quarter, reflecting ongoing economic uncertainty and muted consumer spending.
Delta Air Lines (DAL) gains on strong Q2 2025 performance
Shares of Delta Air Lines (NYSE: DAL) rose 12% on Thursday after the company delivered strong results for the second quarter of 2025 and restored its guidance for the full
CAG Earnings: Conagra Brands Q4 adj. profit drops, misses estimates
Conagra Brands, Inc. (NYSE: CAG), a leading provider of consumer packaged goods, reported lower sales and adjusted earnings for the fourth quarter of 2025. Results missed analysts' estimates. Net sales
Comments
Comments are closed.