Will Lowe's Beat Out Home Depot in the Earnings Battle?

Lowe’s Companies Inc. (NYSE: LOW) is set to share its fiscal first-quarter results on Wednesday before the opening bell. The analysts’ consensus forecast is earnings per share (EPS) of $1.31 on revenue of $18.08 billion. In the same period of last year, the retailer posted $1.22 in EPS and $17.74 billion in revenue.

For a basis of comparison, Home Depot Inc. (NYSE: HD) reported its most recent quarterly results and it was somewhat underwhelming.

During the prior quarter, Lowe’s comparable sales increased 2.5% year over year. Comparable sales specifically for the U.S. home improvement business increased by 2.6%.

At the end of the fiscal 2019 full year, Lowe’s operated 1,977 home improvement and hardware stores in the United States and Canada.

The company’s previously issued guidance for the fiscal 2020 full year called for EPS in the range of $6.45 to $6.65 and total sales growth of 2.5% to 3.0%. Consensus estimates currently call for $5.92 in EPS and $72.57 billion in revenue for the year.

Excluding Tuesday’s move, Lowe’s stock had outperformed the S&P 500 and Dow Jones industrial average with a decline of over 2% year to date. In the past 52 weeks, the share price was actually up 7%.

Here’s what analysts had to say about Lowe’s ahead of the report:

  • Baird has an Outperform rating with a $135 price target.
  • Piper Sandler has an Overweight rating and a $147 target.
  • Jefferies has a Buy rating with a $135 target price.
  • Wells Fargo rates it as Overweight with a $130 price target.

Lowe’s was trading up 1% at $118.21 a share on Tuesday, in a 52-week range of $60.00 to $126.73. The consensus price target is $116.56.