Why Lowe’s Is Suffering in Q3
Lowe’s released its fiscal third quarter financial results before the markets opened on Tuesday.
Lowe’s Companies, Inc. (NYSE: LOW) released fiscal third quarter financial results before markets opened Tuesday. The company said that it had $1.04 in earnings per share (EPS) and $17.42 billion in revenue, versus consensus estimates that called for $0.98 in EPS and $17.36 billion in revenue. The same period from last year had $1.05 in EPS and $16.77 billion in revenue.
During the third quarter, sales increased 3.8%, and comparable sales increased 1.5% as a whole. Comparable sales increased 2.0% for the domestic business in the third quarter.
As of November 2, 2018, Lowe’s operated 2,133 home improvement and hardware stores in the United States, Canada and Mexico representing 214.7 million square feet of retail selling space.
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Looking ahead to the full fiscal year, the company expects to see total sales increase roughly 4% and comparable sales increase 2.5% year over year with EPS in the range of $4.08 to $4.24. Consensus estimates are calling for $5.15 in EPS and $71.59 billion in revenue for the full year.
Marvin R. Ellison, Lowe’s president and CEO, commented:
Our top priority in the third quarter was positioning Lowe’s for long-term success by identifying underperforming or non-core businesses and stores for divestiture. With our strategic reassessment substantially completed, we can now intensify our focus on the core retail business.
Shares of Lowe’s closed Monday at $91.35, with a consensus analyst price target of $118.07 and a 52-week range of $79.11 to $117.70. Following the announcement, the stock was down about 6% at $86.02 in early trading indications Tuesday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
