Categories Consumer, Earnings

Lowe’s stock sinks after Q1 earnings miss estimates

Lowe’s Companies Inc. (NYSE: LOW) topped market expectations on revenue for the first quarter of 2019 but earnings fell shy of forecasts, causing shares to sink 9% in premarket hours on Wednesday.

Total sales were $17.7 billion, up 2.2% from the same period last year. Comparable sales grew 3.5% while comparable sales for the US home improvement business rose 4.2%.  

Lowe's reports first quarter 2019 earnings results

On a GAAP basis, the company reported net income of $1 billion, or $1.31 per share, compared to $988 million, or $1.19 per share, in the year-ago period. Adjusted EPS was $1.22.  

Lowe’s had planned to exit its Mexico retail operations by selling the operating business. However, after an extensive market evaluation, the company decided to sell the assets of the business instead. This decision resulted in an $82 million tax benefit in the first quarter, which offset $12 million of pre-tax operating costs for the Mexico retail operations.

Marvin R. Ellison, Lowe’s president and CEO said, “We are taking the necessary actions to more systematically analyze and implement retail price changes to mitigate cost pressure. Our recent acquisition of the Retail Analytics platform from Boomerang Commerce will also assist in modernizing and digitizing our approach to pricing. We are still in the early stages of our transformation, and with the changes we are putting in place, we expect to deliver improved gross margin performance over the balance of the year.”

As of May 3, 2019, Lowe’s operated 2,002 home improvement and hardware stores in the US and Canada, representing 208.8 million square feet of retail selling space.

For fiscal year 2019, total sales are expected to increase approx. 2% while comparable sales are expected to increase approx. 3%. GAAP EPS is expected to be $5.54 to $5.74 and adjusted EPS is expected to be $5.45 to $5.65.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Electronic Arts (EA) Q4 earnings drop and miss estimates; revenue down 3%

Video game company Electronic Arts, Inc. (NASDAQ: EA) reported lower earnings and revenues for the fourth quarter of 2021. Earnings also missed analysts' forecast. During the March quarter, net bookings

What lies in store for Tyson Foods (TSN) this year?

Shares of Tyson Foods Inc. (NYSE: TSN) were in green territory during afternoon hours on Tuesday. The stock has gained 32% over the past 12 months and 23% since the

Virgin Galactic (SPCE) fails to impress market amid looming uncertainty

Space tourism company Virgin Galactic Holdings, Inc. (NYSE: SPCE) ended the first quarter of 2021 without generating revenue and continued the losing streak even as uncertainty over its test flight

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top