Categories AlphaGraphs, Earnings, Retail

Lowe’s misses Q4 revenue estimate, in line with earnings consensus

Patio furniture maker Lowe’s Companies (LOW) Wednesday reported fourth-quarter adjusted earnings of 80 cents per share, in line with the street projection. On a reported basis, the company swung to a loss of $1.03 per share from a profit of 67 cents per share last year, hurt by certain goodwill impairment charges related to its Canadian operations.

Revenue, meanwhile, edged up less than 1% to $15.6 billion, narrowly missing analysts’ estimate of $15.7 billion. Comparable sales for the US home improvement business rose 2.4%. Overall comparable sales improved by 1.7%.

Image courtesy: Lowe’s

LOW shares fell slightly following the results. The stock has gained 9.6% in the trailing 52 weeks and 14% since the beginning of this year.

CEO Marvin Ellison said, “We anticipate continued weakness in the Canadian housing market in the near-term, but remain confident in our market position in Canada and the long-term potential of that business.”

Lowe's Q4 2018 earnings infographic

For fiscal 2019, the Mooresville, North Carolina-based firm expects total sales to increase by about 2%. Diluted EPS is projected in the range of $6.00 to $6.10 and comparable sales of about +3%.

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

Yesterday, shares of rival Home Depot (HD) fell over 2% after reporting lower-than-expected fourth quarter results and offering lackluster guidance, hurt by the industry-wide weakness.

 

Also Read:  Lululemon Athletica (LULU): Increased move to active lifestyle sets up opportunity for growth and expansion

Earnings Calendar: Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

COVID-19 drove retailers up the digital path years ahead than anticipated

Earlier we looked into how, during the COVID-19 pandemic, retailers saw changing trends in terms of their assortments and how the acceleration of online shopping led many of them to

Snowflake (SNOW) creates a record as the most successful software IPO ever; stock more than doubles

Data is at the heart of business innovation. Recognizing this trend, companies are seeking ways to transform their businesses by capturing, analyzing, and mobilizing data. The public cloud is becoming

Adobe (ADBE) sees new tailwinds as virtual shift gathers steam

The second half has been highly rewarding for design software maker Adobe Inc. (NASDAQ: ADBE) amid stable demand for digital content solutions. The company has remained unaffected by the virus-related

Top