Home improvement retailer Lowe’s (NYSE:LOW) will be announcing earnings results this Wednesday morning. Here’s what to look for.
Lowe's met analysts’ revenue expectations last quarter, reporting revenues of $20.93 billion, down 2% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ gross margin estimates but full-year revenue guidance meeting analysts’ expectations.
Is Lowe's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lowe’s revenue to grow 1.7% year on year to $23.99 billion, a reversal from the 5.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.24 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lowe's has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Lowe’s peers in the home furnishing and improvement retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Floor And Decor delivered year-on-year revenue growth of 7.1%, meeting analysts’ expectations, and Arhaus reported revenues up 15.7%, topping estimates by 7.4%. Floor And Decor traded up 2.2% following the results while Arhaus was also up 13.5%.
Read our full analysis of Floor And Decor’s results here and Arhaus’s results here.
There has been positive sentiment among investors in the home furnishing and improvement retail segment, with share prices up 6.4% on average over the last month. Lowe's is up 13.6% during the same time and is heading into earnings with an average analyst price target of $264.45 (compared to the current share price of $251).
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