The Home Depot report yesterday that I think had a lot of people concerned. And the question was, okay, the lowering of guidance from Home Depot sent shares lower yesterday on concerns about consumer spending. Are we going to hear the same thing from Lowe's.We didn't. You know, that was kind of the expectation going in this morning that we would kind of you usually get copy paste results from Lowe's. But it's interesting, I think with Lowe's, we kind of tend to forget it's a little bit of this like turnarou ...

Core Insights - Home Depot's lowered guidance raised concerns about consumer spending, leading to a decline in its shares, prompting speculation about Lowe's potential performance [1][5] - Lowe's appears to be executing a turnaround strategy effectively, focusing on digital expansion and professional contractor offerings, which may be yielding better results compared to Home Depot [2][5] - TJX has seen a 21% increase year-to-date, indicating strong consumer demand for value-oriented retail options, despite some fluctuations in stock performance [6][10] Company Performance - Lowe's has implemented initiatives that have led to a million queries per month on its digital platform, doubling conversion rates, showcasing effective digital engagement [3][4] - Lowe's made a $9 billion acquisition to enhance its offerings for professional contractors, indicating a strategic focus on expanding its market presence [5] - Home Depot's stock is down approximately 14% year-to-date, while Lowe's is down about 7%, highlighting a divergence in performance between the two companies [5][6] Consumer Behavior - Consumers are increasingly seeking value, as evidenced by TJX's popularity, where shoppers enjoy the thrill of finding discounted designer brands [6][10] - Target is experiencing a decline in sales, down 2.7% for the quarter, and has struggled to maintain consumer excitement, indicating challenges in its turnaround efforts [11][12] - There is a narrative of a resilient consumer, with some segments still spending despite economic pressures, as seen in various retail sectors [19][20]

Lowe's (LOW) CEO expects home renovations to ramp up in lieu of homeowners taking on new homes because of still-high mortgage rates. Wall Street liked the message. In trading this afternoon, the home improvement chain's stock was up nearly 6%. Americans have "significant equity" of an "average of $400,000 in equity per home," Lowe's CEO Marvin Ellison told Yahoo Finance — a good formula for renovations. "We expect homeowners to start, at some point, to tap into these ... home equity lines of credit (HEL ...

Core Insights - The third-quarter earnings season is concluding, with significant attention on Nvidia and mixed results from major home improvement retailers Home Depot and Lowe's amid softer demand [1][2]. Home Improvement Sector - Home Depot reported fiscal third-quarter results that fell short of analyst expectations, with adjusted earnings per share at $3.74, missing the expected $3.81 by 1.84% and declining from $3.78 in the prior year [4][3]. - Home Depot's sales reached $41.4 billion, a 2.8% year-over-year increase, surpassing the Zacks Consensus Estimate by 0.88%, with approximately $900 million from a recent acquisition [5]. - Comparable sales growth for Home Depot was only 0.2%, significantly below the projected 2.1%, with customer transactions down 1.4% from the previous quarter [6]. - The company lowered its full-year 2025 adjusted earnings forecast due to ongoing consumer uncertainty and weaker housing turnover, leading to a 7% drop in its stock value [7]. Lowe's Performance - Lowe's reported fiscal third-quarter results that exceeded profitability expectations, with total sales of $20.8 billion, up 3.2% year-over-year, aligning closely with estimates [9]. - Adjusted earnings per share for Lowe's reached $3.06, surpassing the anticipated $2.97 by 3% and reflecting a 5.9% increase from the prior year [10]. - Comparable sales for Lowe's rose 0.4% for the second consecutive quarter, supported by an 11.4% increase in online sales and strength in professional categories [10]. - Lowe's stock increased by over 5% in early trading, indicating a better positioning for gradual recovery compared to competitors [11]. Retail Sector Challenges - Target reported a 1.5% year-over-year sales decline to $25.3 billion, missing estimates, with comparable sales down 2.7% [13]. - Target's earnings of $1.78 per share were slightly above estimates, but the bottom line declined 3.8% from the previous year, reflecting cautious consumer spending [14]. - Walmart is set to report its fiscal third-quarter earnings, with projections of a 5.2% increase in earnings per share to $0.61 and revenue expected to reach $177.14 billion, up 4.5% year-over-year [16].

Market Overview - U.S. stocks showed mixed performance with the Dow Jones index falling approximately 0.2% while NASDAQ and S&P 500 saw slight gains of 0.19% and 0.08% respectively [1] - Communication services sector rose by 0.8% while energy stocks declined by 1.6% [1] Company Performance - Lowe's Companies, Inc. (NYSE:LOW) shares increased over 5% after exceeding Wall Street profit expectations for Q3, reporting adjusted earnings per share of $3.06, a 5.9% year-over-year increase, surpassing the consensus estimate of $2.97 [2][3] - The company slightly missed sales expectations but raised its full-year revenue target, focusing on professional customers and online growth [2] Commodity Market - Oil prices fell by 2.4% to $59.26 while gold increased by 0.3% to $4,077.20 [6] - Silver and copper also saw gains, with silver up 0.2% to $50.615 and copper rising 0.4% to $4.9945 [6] Stock Movements - WeShop Holdings Limited (NASDAQ:WSHP) shares surged 413% to $169.32 following its Nasdaq debut [8] - Freight Technologies, Inc. (NASDAQ:FRGT) shares rose 67% to $1.1045 after launching its AI-powered freight rate prediction platform [8] - Semrush Holdings, Inc. (NYSE:SEMR) shares increased by 74% to $11.79 after Adobe announced plans to acquire the company [8] - Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) shares dropped 50% to $22.88 due to Phase 3 trial results not achieving statistical significance [8] - Carver Bancorp, Inc. (NASDAQ:CARV) shares fell 51% to $1.4702 after announcing plans to de-register its common stock [8] - Tempest Therapeutics, Inc. (NASDAQ:TPST) shares decreased by 47% to $4.94 following an acquisition announcement [8] International Markets - European shares mostly declined, with the eurozone's STOXX 600 down 0.03% while Spain's IBEX 35 rose by 0.39% [7] - Asian markets closed mixed, with Japan's Nikkei 225 down 0.34% and Hong Kong's Hang Seng down 0.38%, while China's Shanghai Composite gained 0.18% and India's BSE Sensex rose by 0.61% [9]

Core Insights - Homeowners are avoiding large renovations, but there is a trend towards smaller home improvement projects, which is seen as a positive indicator for 2026 [1][2] - Lowe's reported third-quarter results that surpassed analysts' expectations, although the profit guidance for 2025 was lower than anticipated [3] Consumer Behavior - Many homeowners are delaying expensive renovations due to affordability concerns and economic uncertainty, particularly regarding larger discretionary purchases [3] - High interest rates have made home renovations less appealing, especially for those needing loans [3][4] Market Conditions - Despite rising home prices providing borrowing opportunities, homeowners are waiting for lower interest or mortgage rates before committing to larger purchases [4] - There is potential for homeowners to access between $11 billion to $13 billion in equity for borrowing when interest rates decrease [4] Company Outlook - Lowe's executives express cautious optimism about future conditions as they anticipate potential near-term rate reductions could serve as an additional stimulus for consumer spending [5]

Core Insights - Lowe's reported better-than-expected profits, leading to a surge in its stock price, contrasting with rival Home Depot's disappointing earnings [1][2][7] Financial Performance - Adjusted earnings per share (EPS) for Lowe's in Q3 were $3.06, an increase from $2.89 year-over-year, exceeding analyst expectations [2] - Revenue for the quarter was approximately $20.81 billion, aligning with estimates, while comparable sales growth was slower than anticipated at 0.4% [2][5] Sales Drivers - The increase in profits was attributed to a rise in online sales and sales to professional contractors, alongside double-digit growth in "home services" [3] - CEO Marvin Ellison noted that the current quarter has started positively with comparable sales growth, which is significant given last year's strong sales due to hurricane-related demand [4][7] Future Outlook - Lowe's raised its full-year revenue forecast to $86 billion, up from a previous range of $84.5 billion to $85.5 billion, surpassing analyst consensus [5] - The company anticipates adjusted EPS at the lower end of its previous range, now projected at $12.25, citing ongoing macroeconomic uncertainty [5] - Comparable sales are now expected to be roughly flat, compared to the previous guidance of flat to 1% growth [5] Market Context - The results from Lowe's and Home Depot may indicate broader trends in the U.S. housing market and demand for home improvement supplies and services [4] - Analysts from JPMorgan highlighted the contrast between Lowe's positive outlook and Home Depot's cautious stance regarding current demand [8]

Core Insights - The company is focusing on long-term growth from professional contractors, highlighted by an $8.8 billion acquisition of Foundation Building Materials to enhance wholesale capabilities and better serve Pro customers [1][3][5] - Despite modest sales growth, the company faces challenges from inflation, elevated interest rates, and a fluctuating housing market, leading to a lowered full-year profit outlook [8][11] - Online sales increased by 11.4%, and home services revenue saw double-digit growth, indicating a shift in consumer behavior towards outsourcing installation and remodeling tasks [9][10] Financial Performance - For Q3, net sales rose to $20.8 billion, up from $20.2 billion year-over-year, while comparable sales increased by only 0.4% [8] - The company is experiencing a complex integration of expanded capabilities while maintaining operational simplicity, which includes aligning technology systems and consolidating supply chains [10][11] Strategic Focus - The integration of Foundation Building Materials is a significant shift for the company, allowing it to control more of the Pro ecosystem from specification to fulfillment [7][11] - Professional contractors, although a small share of overall store traffic, contribute a disproportionately large share of revenue, making them central to the company's long-term strategy [4][9]

Core Insights - Lowe's Companies, Inc. reported third-quarter fiscal 2025 results with year-over-year growth in both revenue and earnings, with revenues meeting the Zacks Consensus Estimate and earnings exceeding it [1][3] Financial Performance - Adjusted earnings were $3.06 per share, surpassing the Zacks Consensus Estimate of $2.97, marking a 5.9% increase from $2.89 per share in the same period last year [3] - Net sales reached $20,813 million, slightly up from $20,170 million in the previous year, driven by a 0.4% rise in comparable sales, 11.4% growth in online sales, and double-digit growth in home services [4][9] Margin and Cost Analysis - Gross margin expanded to 34.2%, up 50 basis points from the prior-year quarter, while SG&A expenses increased to 20% of sales from 19% [5] - Operating income was $2,481 million, down from $2,536 million in the year-ago quarter, with the operating margin contracting to 11.9% from 12.6% [5] Financial Health - As of the end of the quarter, Lowe's had cash and cash equivalents of $621 million, long-term debt of $37,498 million, and a shareholders' deficit of $10,382 million [6] - Operating cash flow for the nine months ended October 31 totaled $8,297 million, with $8.8 billion deployed for the FBM acquisition and $673 million paid in dividends [6] Outlook - Lowe's updated its full-year sales outlook to $86 billion, up from the previous range of $84.5-$85.5 billion, while projecting flat comparable sales [8][9] - The company anticipates an adjusted operating margin of 12.1%, slightly below the previous forecast of 12.2%-12.3%, and expects net interest expenses to be approximately $1.4 billion [8][10]

Lowe's logo is seen on the store in Texas, United States on October 21, 2025. (Photo by Jakub Porzycki/NurPhoto via Getty Images)NurPhoto via Getty ImagesLowe’s (NYSE: LOW) surged nearly 6% in pre-market trading to around $230, indicating early enthusiasm from investors about the company's operational progress. At first glance, Q3 might not seem impressive—comparable sales increased by only 0.4%—but the underlying figures present a different picture. Beneath the surface, Lowe’s is subtly transforming its gr ...