Lowe’s Q3 2024 Earnings (LOW)
LOS ANGELES, CALIFORNIA – AUGUST 20: The exterior sign of the Lowe’s home improvement store is seen on August 20, 2024 in Los Angeles, California. The company beat expectations for fiscal second-quarter earnings, but missed on revenue and cut its full-year outlook because of inflation. (Photo by Eric Thayer/Getty Images)
Eric Thayer | Getty Images News | Getty Images
Lowe’s beat Wall Street’s quarterly earnings expectations on Tuesday, as outdoor do-it-yourself projects, home-based professional business activity and stronger online shopping boosted sales.
However, even with better-than-expected results, the home improvement retailer is still predicting a year-over-year decline in sales. The company updated its full-year guidance on Tuesday and now expects total revenue to come in between $83 billion and $83.5 billion, above its previous forecast of $82.7 billion to $83.2 billion. billion USD. It said it expected comparable sales to fall 3% to 3.5%, slightly better than the 3.5% to 4% decline it had previously predicted.
Lowe’s is ending a year-ago period in which the company downgraded its outlook and sales fell nearly 13% year-over-year. It also cut full-year forecasts in August, as it predicted demand for home improvements would be weak in the second half of the year due to high interest rates.
Here’s what the company reported for the three-month period ending November 1 compared to what Wall Street expected, based on LSEG’s survey of analysts:
- Earnings per share: $2.89 revised versus $2.82 expected
- Revenue: $20.17 billion vs. $19.95 billion expected
In the fiscal third quarter, Lowe’s net income fell to $1.7 billion, or $2.99 per share, compared to $1.77 billion, or $3.06 per share, during the period of the previous year. Revenue fell from $20.47 billion in the previous quarter.
Lowe’s competitors, Home Depotreported last week that customers still delaying larger projects and more expensive purchaseseven after two interest rate cuts by the Federal Reserve. Home Depot beat Wall Street’s sales and earnings expectations, but still posted its eighth straight quarter of comparable sales declines. However, it did see some improved sales trends due to storm-related demand, warm weather housing projects and the acquisition of SRS Distributiona company that sells supplies to landscape, pool and roofing professionals.
As of Monday’s close, Lowe’s shares were up about 22% this year. That’s less than the S&P 500’s gain of about 24% over the same period. The company’s shares closed Monday at $271.77, giving Lowe’s market value to $154.17 billion.
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