Lowe’s Cos. Inc. fell slightly short of its full-year outlook in its latest financial report, but its stock showed a slight increase in premarket trading. The company recorded net earnings of $1.0 billion for the fiscal fourth-quarter, translating to $1.77 per share, up from $957 million, or $1.58 per share, in the same period a year ago. Adjusted earnings per share came in at $2.28, surpassing analysts’ expectations of $1.68.
Revenue and Comparable Sales
Revenue for the quarter decreased to $18.6 billion from $22.4 billion, with last year’s figures being positively impacted by an extra week of sales and the contribution from Lowe’s Canadian retail business. The FactSet consensus had projected revenue of $18.5 billion for the most recent period.
Comparable sales experienced a 6.2% decline, primarily due to a weakened demand for DIY products and challenging winter weather conditions in January. However, sales remained steady for Lowe’s Pro customer base during this period.
Outlook for the New Fiscal Year
Looking ahead to the new fiscal year, Lowe’s expects total sales to range between $84 billion and $85 billion, with a projected 2% to 3% decline in comparable sales. These forecasts are influenced by current macroeconomic uncertainties in the near term, leading analysts to anticipate slightly higher total sales of $85.4 billion.
The company also provided an EPS outlook of $12 to $12.30 for the full year, falling short of analysts’ expectations of $12.68 per share.
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