Lowe's (LOW) Q3 2024 Earnings
GAAP EPS of $2.99 includes a $54 million pre-tax gain ($0.10 per share impact) from the contingent consideration associated with the 2022 sale of the Canadian retail business.
How Did LOW Stock React to Q3 2024 Earnings?
S&P 500 over the same 30 days: +0.14%.
Did LOW Beat Earnings? Q3 2024 Results
Yes. Lowe's reported Q3 2024 earnings of $2.89 a share on Nov 19, 2024, beating the $2.81 consensus estimate by 2.8%. Revenue was $20.2B against a $19.9B estimate.
Lowe's delivered a modest but clean beat in its fiscal third quarter, with adjusted diluted EPS of $2.89 topping the $2.81 consensus estimate by 2.80%, while revenue of $20.17 billion edged past expectations by 1.29%, even as total sales slipped 1.5% from the year-ago period. The quarter's narrative was shaped by two forces pulling in opposite directions: hurricane-related demand from Helene and Milton provided a meaningful tailwind in September and October, while persistent consumer reluctance on larger discretionary home improvement projects continued to weigh on results, with comparable sales falling 1.1% and transactions on tickets above $500 declining 3.0%. Pro customers remained a bright spot, with comparable sales growing high-single digits, and online sales rose 6.0% on the back of double-digit app traffic gains. Encouraged by the quarter's performance, Lowe's nudged its full-year 2024 outlook higher, now targeting total sales of $83.00 to $83.50 billion and adjusted diluted EPS of $11.80 to $11.90, as management signaled plans to detail new growth initiatives at its upcoming investor conference.
- Pro comparable sales up high-single digits with broad-based growth across regions and product categories
- Online sales growth of 6.0%, driven by double-digit traffic increase on the app
- Storm-related sales from Hurricanes Helene and Milton partially offset DIY discretionary weakness
- Smaller-ticket outdoor DIY projects contributed positively
- Gross margin improved 3 basis points year-over-year to 33.69%
- Building Materials, Hardware, Seasonal & Outdoor Living, and Paint product categories outperformed company average
- 5 of 15 regions delivered comp growth above company average
- First ever Member Week in October with exclusive deals
“Our results this quarter were modestly better-than-expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects.”
Lowe's CEO, on the earnings call
What Was Lowe's's Outlook in Q3 2024?
Lowe's updated its full year 2024 outlook upward: total sales of $83.0 to $83.5 billion (previously $82.7 to $83.2 billion), comparable sales expected down 3.0% to 3.5% (previously down 3.5% to 4.0%), adjusted operating margin of 12.3% to 12.4% (previously 12.4% to 12.5%), net interest expense of approximately $1.3 billion (previously $1.4 billion), adjusted effective tax rate of approximately 24.5%, adjusted diluted EPS of approximately $11.80 to $11.90 (previously $11.70 to $11.90), and capital expenditures of approximately $2 billion. The update reflects Q3 performance and anticipated modest storm-related demand in Q4.
LOW YoY Financials
| Metric | Q3 2024 | Q3 2023 | Year over year |
|---|---|---|---|
| Revenue | $20.2B | $20.5B | −1.5% |
| Gross Profit | $6.8B | $6.5B | +5.3% |
| Operating Income | $2.5B | $2.7B | −5.9% |
| Net Income | $1.7B | $1.8B | −4.4% |
Figures from SEC filings and company reports. Not investment advice.