Lowe’s Companies (LOW) reported robust results in the third quarter. The home improvement retailer’s company reported adjusted earnings of $2.89 per share in the third quarter, above consensus estimates of $2.82 per share.
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Furthermore, the company posted revenues of $20.2 billion in the third quarter, compared to $20.5 billion in the same period last year. This surpassed Street estimates of $19.9 billion. In addition, the retailer’s comparable sales declined by 1.1% in Q3, due to continued softness in the demand for big-ticket do-it-yourself (DIY) discretionary projects.
LOW Raises Guidance
Looking ahead, the company raised its FY24 outlook and now expects its total sales to be in the range of $83 to $83.5 billion, compared to its prior guidance between $82.7 and $83.2 billion. In addition, LOW narrowed its forecast for comparable sales and anticipates them to decline in the range of 3% to 3.5%, from its prior projection of a drop between 3.5% and 4%. Furthermore, Lowe’s now expects adjusted earnings to be in the range of $11.80 to $11.90 per share, compared to its previous outlook between $11.70 and $11.90 per share.
For reference, analysts expect the company to report earnings of $11.81 per share on revenues of around $83 billion.
Is LOW a Buy or Sell?
Analysts remain cautiously optimistic about LOW stock, with a Moderate Buy consensus rating based on 16 Buys and seven Holds. Over the past year, LOW has increased by more than 30%, and the average LOW price target of $287.59 implies an upside potential of 5.8% from current levels. These analyst ratings are likely to change following LOW’s results today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
