For the quarter ended January 2025, Lowe's (LOW) reported revenue of $18.55 billion, down 0.3% over the same period last year. EPS came in at $1.93, compared to $1.77 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $18.35 billion, representing a surprise of +1.13%. The company delivered an EPS surprise of +5.46%, with the consensus EPS estimate being $1.83.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

The home improvement retailer exceeded analysts' expectations, driven by growth in online and Pro sales.Lowe's Companies (LOW 2.52%), a leading home improvement retailer, reported its fourth-quarter 2024 earnings on Feb. 26. The results reflected a robust performance despite facing challenging economic conditions. The company posted adjusted diluted EPS of $1.93, surpassing analysts' expectations of $1.84. Revenue remained flat at $18.6 billion compared to the same period last year, but exceeded forecasts o ...

Just a day after competitor Home Depot (HD) had its turn in the earnings confessional, Lowe's Companies Inc (NYSE:LOW) revealed a top- and bottom-line win for the fourth quarter amid improving sales. The home improvement retailer also saw demand fall amid higher interest rates and home costs, however, issuing a lackluster sales and profit forecast for the year.LOW is up 3.6% to trade at $251 at last glance, after yesterday snapping a six-day losing streak. The stock has only had three positive weeks since t ...

Financial Performance - Net earnings for Q4 2024 were $1.1 billion, with diluted EPS of $1.99, an increase from $1.77 in Q4 2023[1] - Total sales for the quarter reached $18.6 billion, with comparable sales increasing by 0.2%[1] - Net earnings for the fiscal year ended January 31, 2025, were $6,957 million, a decrease of 9.93% compared to $7,726 million for the previous year[17] - Adjusted diluted earnings per share for the three months ended January 31, 2025, was $1.93, slightly down from the reported diluted earnings per share of $1.99[22] Sales Projections - For fiscal year 2025, total sales are projected to be between $83.5 billion and $84.5 billion, with comparable sales expected to be flat to up 1%[9] Capital Management - The company repurchased approximately 5.5 million shares for $1.4 billion and paid $650 million in dividends during the quarter[3] - The company repurchased $4,053 million of common stock during the fiscal year, compared to $6,138 million in the previous year, reflecting a decrease of 33.94%[17] Operating Metrics - Operating income margin is expected to be between 12.3% and 12.4% for fiscal year 2025[9] - The effective income tax rate for fiscal year 2025 is estimated to be approximately 24.5%[9] Assets and Liabilities - Total assets increased to $43,102 million as of January 31, 2025, up from $41,795 million on February 2, 2024, representing a growth of 3.13%[16] - Current liabilities increased to $18,757 million, up from $15,568 million, reflecting a rise of 20.73%[16] - Long-term debt, excluding current maturities, decreased to $32,901 million from $35,384 million, a reduction of 7.01%[16] - Total liabilities increased to $57,333 million, up from $56,845 million, indicating a growth of 0.86%[16] Cash Flow - Net cash provided by operating activities rose to $9,625 million, an increase of 18.19% from $8,140 million in the prior year[17] - Cash and cash equivalents at the end of the period were $1,761 million, a significant increase from $921 million at the beginning of the period[17] Strategic Initiatives - Lowe's aims to continue its strategic initiatives to capitalize on the expected recovery in the home improvement market[2] - The company recognized an $80 million pre-tax gain from the sale of its Canadian retail business, positively impacting diluted EPS by $0.06[1] - The company recognized a pre-tax income of $80 million related to the Canadian retail business transaction in the fourth quarter of fiscal 2024[20] Capital Expenditures - The company plans to allocate approximately $2.5 billion for capital expenditures in fiscal year 2025[9] Store Operations - As of January 31, 2025, Lowe's operated 1,748 stores with a total retail selling space of 195 million square feet[2]

Core Insights - Lowe's reported quarterly earnings of $1.93 per share, exceeding the Zacks Consensus Estimate of $1.83 per share, and showing an increase from $1.77 per share a year ago, representing an earnings surprise of 5.46% [1] - The company achieved revenues of $18.55 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 1.13%, although this is a slight decrease from year-ago revenues of $18.6 billion [2] - Lowe's has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Lowe's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $3.12 on revenues of $21.26 billion, and for the current fiscal year, it is $12.56 on revenues of $84.49 billion [7] Industry Context - The Retail - Home Furnishings industry, to which Lowe's belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Lowe's stock may also be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Stock Performance - Since the beginning of the year, Lowe's shares have declined by approximately 1.8%, contrasting with the S&P 500's gain of 1.3% [3] - The current estimate revisions trend for Lowe's is mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Core Insights - Lowe's exceeded Wall Street's expectations for quarterly earnings and revenue, projecting modest sales growth for the upcoming year [1][2] - The company anticipates full-year total sales between $83.5 billion and $84.5 billion, with comparable sales expected to be flat to up 1% year-over-year [1][3] - For the fiscal fourth quarter, Lowe's reported a net income of $1.13 billion, or $1.99 per share, compared to $1.02 billion, or $1.77 per share, in the previous year [2][6] Financial Performance - Lowe's fiscal fourth quarter revenue was $18.55 billion, surpassing expectations of $18.29 billion [6] - The company's net sales for the fiscal year totaled $83.67 billion, reflecting a 3% decline from the prior fiscal year [3] Market Context - The home improvement market is currently facing challenges due to slower housing turnover and higher borrowing costs, which have kept some customers from making purchases [3] - Competitor Home Depot also reported better-than-expected results but indicated that the housing market and mortgage rates are unlikely to change significantly in the near future [4]

Core Points - Lowe's Companies, Inc. reported net earnings of $1.1 billion and diluted earnings per share (EPS) of $1.99 for the quarter ended January 31, 2025, an increase from diluted EPS of $1.77 in the fourth quarter of 2023 [1][10] - Total sales for the quarter were $18.6 billion, with comparable sales increasing by 0.2%, driven by high-single-digit Pro and online sales, strong holiday performance, and rebuilding efforts post-hurricanes [2][3] - The company recognized an $80 million pre-tax gain from the sale of its Canadian retail business, which positively impacted diluted EPS by $0.06 [1][24] Financial Performance - The adjusted diluted EPS for the fourth quarter of 2024, excluding the gain from the Canadian business sale, was $1.93 [1][27] - Gross margin for the quarter was 32.86%, compared to 32.40% in the same quarter of the previous year [15] - Operating income for the quarter was $1.83 billion, representing 9.87% of sales, an increase from 9.07% in the prior year [15] Capital Allocation - During the quarter, the company repurchased approximately 5.5 million shares for $1.4 billion and paid $650 million in dividends [4] - For the fiscal year, Lowe's returned $6.5 billion to shareholders through share repurchases and dividends [4] Business Outlook - The company introduced its outlook for fiscal 2025, indicating continued near-term uncertainty in the home improvement market [5] - Expected total sales for fiscal 2025 are projected to be between $83.5 billion and $84.5 billion, with comparable sales anticipated to be flat to up 1% compared to the prior year [11] Operational Highlights - As of January 31, 2025, Lowe's operated 1,748 stores with a total retail selling space of 195 million square feet [3] - The company serves approximately 16 million customer transactions weekly in the United States [8]

Financial Performance - Lowe's is set to release its fourth-quarter financial results on February 26, with expected earnings of $1.84 per share, an increase from $1.77 per share in the same period last year [1] - The company projects quarterly revenue of $18.29 billion, a slight decrease from $18.6 billion a year earlier [1] Strategic Initiatives - At the 2024 Analyst and Investor Conference, Lowe's introduced a standardized framework to leverage generative AI, aimed at enhancing customer experiences and increasing productivity [2] Stock Performance and Analyst Ratings - Lowe's shares rose by 2.2% to close at $242.39 on a recent Tuesday [2] - Telsey Advisory Group analyst Joseph Feldman maintains an Outperform rating with a price target of $305 [4] - Truist Securities analyst Scott Ciccarelli has a Buy rating and raised the price target from $307 to $308 [4] - RBC Capital analyst Steven Shamesh holds a Sector Perform rating with an increased price target from $291 to $292 [4] - Evercore ISI Group analyst Greg Melich maintains an In-Line rating and raised the price target from $270 to $290 [4] - Wedbush analyst Seth Basham reiterated a Neutral rating with a price target of $250 [4]

Core Viewpoint - Lowe's Companies, Inc. is set to report its fourth-quarter fiscal 2024 earnings on February 26, with investors keenly anticipating whether the company can exceed market expectations [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for the upcoming quarter's revenues is $18,286 million, reflecting a 1.7% decrease from the previous year [2] - The consensus estimate for quarterly earnings has increased by a penny to $1.83 per share, indicating a 3.4% rise from the same quarter last year [2] Historical Performance - Lowe's has a trailing four-quarter earnings surprise average of 3.9%, with the last reported quarter outperforming the Zacks Consensus Estimate by 2.5% [3] Key Factors Impacting Earnings - A significant concern for Lowe's is the decline in the Do-It-Yourself (DIY) home improvement segment, as consumers are prioritizing essential expenditures over home improvement projects [4] - Comparable sales fell by 1.1% in the third quarter of fiscal 2024, with expectations of a 2.1% year-over-year decrease in comparable sales for the fourth quarter [5] Strategic Initiatives - Despite challenges, Lowe's is adapting to changing consumer behaviors, with the Pro segment serving as a key growth driver [6] - The company is implementing a multi-year strategy to enhance product offerings, fulfillment options, and the overall shopping experience for professional customers [6] Earnings Prediction Model - The Zacks model indicates a likelihood of an earnings beat for Lowe's, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [7][8]

Core Viewpoint - Analysts forecast that Lowe's will report quarterly earnings of $1.82 per share, reflecting a year-over-year increase of 2.8%, while revenues are expected to decline by 1.7% to $18.29 billion [1] Group 1: Earnings Estimates - The consensus EPS estimate has been revised downward by 0.1% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Group 2: Key Metrics - Analysts expect the total number of stores to be 1,747, slightly up from 1,746 in the same quarter last year [5] - The consensus for total sales floor square footage is projected at 194.98 million, down from 195 million year-over-year [5] - The average store size selling square feet is estimated to remain at 112 thousand, unchanged from the previous year [6] Group 3: Stock Performance - Over the past month, Lowe's shares have decreased by 5.7%, contrasting with a 2.2% increase in the Zacks S&P 500 composite [6] - Lowe's currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]